Cash conversion cycle, Negus Enterprises has an inventory

Cash conversion cycle

Assignment Help Financial Management

Reference no: EM131189301

Cash Conversion Cycle

Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 38 days, and a payables deferral period of 36 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.

A. What is the length of the firm's cash conversion cycle?

___________ days

B. If Negus's annual sales are $3,360,275 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.

$___________

C. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.

Reference no: EM131189301

Questions Cloud

Analyze study finding as they relate to effective management : Analyze the study's findings as they relate to the effective management of tuberculosis. Summarize the results of the study. Justify how the results of the study can improve rapid detection of MDR-TB.

Working capital cash flow cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $140,000 (all on credit), and it earned a net profit of 7%. Calculate Strickler's cash conversion cycle. What..

What is strategy : Identify an organisation which would benefit from the application of these ideas and explain how the ideas should be applied.

How many possible outcomes are in the sample space : How many possible outcomes are in the sample space of this experiment?

Cash conversion cycle : Negus Enterprises has an inventory conversion period of 56 days, an average collection period of 38 days, and a payables deferral period of 36 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. What i..

Why hipaa allows the second scenario and disallows the first : Then indicate why HIPAA allows the second scenario and disallows the first. Finally, propose a way to correct the first scenario so that the results can be shared over the phone with Zameya.

How large will the last deposit be : Reaching a Financial Goal You need to accumulate $10,000. To do so, you plan to make deposits of $1,350 per year - with the first payment being made a year from today - into a bank account that pays 9.41% annual interest. How large will the last depo..

Compare and contrast the various hrm styles and philosophies : Compare and contrast the various HRM styles and philosophies to explain how HRM can contribute to the successful strategic management of a firm. Use evidence from academic literature to support your discussion.

What are their roles and priorities : Submit a paper discussing the following: Who are the critical stakeholders involved in this negotiation? What are their roles and priorities? Explain the role and position of each of the stakeholders and describe how their interests may differ dep..

User Account

All Pages