Cash conversion cycle for a firm

Assignment Help Operation Management
Reference no: EM131087177

What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?

A. 14.59 days

B. 46.25 days

C. 70.41 days

D. 136.25 days

Reference no: EM131087177

Questions Cloud

Determine the value of p for which aoq : a. Calculate AOQ for p = .01, .02,..., .10. What does this suggest about the value of p for which AOQ is a maximum and the corresponding AOQL?
What is agency theory : What is agency theory? How can setting the appropriate goals for the firm minimize the agency problem? Differentiate between profit maximization and wealth maximization.
Restrictive type of doubling-sampling plan : Some sources advocate a somewhat more restrictive type of doubling-sampling plan in which r1 = c2 + 1; that is, the lot is rejected if at either stage the (total) number of defectives is at least r1 (see the book by Montgomery).
Compute a statement of cash flows using the indirect method : Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Cash conversion cycle for a firm : What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?
Draw a schematic of the set up and calculate the force : Draw a schematic of the set up and calculate the force on the bar.
Effective annual return on its consumer loans : Magnus Credit Corp. wants to earn an effective annual return on its consumer loans of 15.25 percent per year. The bank uses daily compounding on its loans.
Determining the effective annual return : If you require an effective annual return of 9 percent on this investment, how much will you pay for the contract today?
Calculate the force on the bar : Draw a schematic of the set up and calculate the force on the bar.

Reviews

Write a Review

Operation Management Questions & Answers

  What are the challenges faced in training expatriate

What are the challenges faced in training expatriate managers? How would you design an effective expatriate traning program?

  What capacity should their involvement be

The entire SDLC process can be very lengthy and require a lot of planning. Who are the people that should be involved in the SDLC process? In what capacity should their involvement be?

  Determine how much risk a person is to insure

Research facilities can use information to determine how diseases affect certain individuals. Insurance companies can use predictability to determine how much risk a person is to insure, this can greatly influence the amount an individual will ha..

  Develop a material requirements plan that will provide 200

Develop a material requirements plan that will provide 200 golf carts by week 8 assuming lot for lot ordering.

  Identify slack in tghe activities not on the project critica

Identify slack in tghe activities not on the project critical path, Your boss would like you to suggest changes that could be made to the project that would significantly shorten it What would you suggest?

  What are requirements of the omb circular

What are requirements of the OMB Circular A-94 in calculating benefit-cost ratios of public sector projects funded by the Federal Highway Administration? I need more details.

  Define all variables-parameters clearly for generic model

Assume that we must hire people to work at an airport (for this simplified problem, we will only solve for a single day; the real-life problem is much more complicated). We know we have a given demand for workers D1, D2, …, D20 every hour from period..

  Which one of the two forecasting methods is more accurate

According to MSE criterion, which one of the two forecasting methods is more accurate?

  Estimating the sample size

If a pilot test revealed 45% perceived poor service quality, and we decide the interval range is + 10 percent with a 95% confidence level, what is the calculated sample size to confirm or not the findings from the pilot test previously applied to fir..

  Which three hospitality departments

How has the hospitality industry changed over the past 20 years as a result of technology? How has technology changed the reservation process? Which three hospitality departments

  What is an estimate of the proportion of prospective

How many prospective customers would have to be queried for Luxor to be 90 percent certain that its estimated proportion was within five percent of the true value?

  An explanation of a demand chain an identification

An explanation of a demand chain An identification of the constituent parts of a demand chain

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd