Firm cash conversion cycle

Assignment Help Accounting Basics

Reference no: EM13150164

The Hamlin Corporation has an inventory conversion period of 60 days, a receivables collection period of 30 days, and a payables deferral period of 28 days. Its annual credit sales are $5,000,000, and its annual credit purchases are $3,500,000.

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

b. What is the firm's investment in accounts receivable?

c. What is the firm's level of accounts payable?

d. Calculate how many times a year the company's inventory is turned over.

e. Identify three ways in which the company could reduce its cash conversion cycle? What are possible risks in reducing it?

Please answer showing the steps.

Reference no: EM13150164

Questions Cloud

Adjusted tax basis for partnership interest : What is Desmond's adjusted tax basis for his partnership interest immediately after the partnership is formed? What is the partnership's adjusted basis for the property contributed by Desmond?

Boardroom presentation and feedback : In December 2013 Holden announced that they would cease manufacturing in Australia by the end of 2017. The closure of plants at Port Melbourne and Adelaide will result in the loss of 2,900 jobs.

Market supply of labour considering the graphs : Show on a graph the market supply of labour considering the graphs of willingness to work and ability to work? and what happens to the labour supply when the willingness to work and ability to work changes?

Firm cash conversion cycle : The Hamlin Corporation has an inventory conversion period of 60 days, a receivables collection period of 30 days, and a payables deferral period of 28 days. Its annual credit sales are $5,000,000, and its annual credit purchases are $3,500,000. a...

Confidence interval estimate of the mean undergraduate gpa : The population standard deviation can be assumed known as .24. What is the 95% confidence interval estimate of the mean undergraduate GPA for students admitted to the top graduate business schools.

What volume will the n2o4 occupy : If 27.2 mL of NO2 gas is completely converted to N2O4 gas under the same conditions, what volume will the N2O4 occupy?

What are archaea : What are Archaea? Describe types of environments they are usually found in, as well as reasons for their habitat preferences.

Auditor of glaxo corporation (glaxo) for the current year : the auditor of Glaxoa Corporation (Glaxoa) for the current year. For each situation:1 Describe the corrections, if any, you would propose to management to make the financial statements conform to GAAP.2.Identify the type of opinion you would issue i..

User Account

All Pages