Firm operating cycle and cash conversion cycle

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Reference no: EM131526662

Camp Manufacturing turns over its inventory 5 times each? year, has an average payment period of 33 ?days, and has an average collection period of 64 days. The firm has annual sales of ?$3.0 million and cost of goods sold of ?$2.4 million. ?(Use a? 365-day year.)

a. Calculate the? firm's operating cycle and cash conversion cycle.

b. What is the dollar value of inventory held by the? firm?

c. If the firm could reduce the average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working? capital?

Reference no: EM131526662

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