How long is the firms cash conversion cycle

Assignment Help Finance Basics

Reference no: EM13271881

Suppose it takes a computer manufacturer 10 days to build and sell computers. Also suppose it takes the firm's customers 20 days, on average, to pay for the computers after they have purchased them on credit. Finally, suppose the firm is able to delay paying for the computer parts it uses in the manufacturing process for 20 days. Given these conditions, how long is the firm's cash conversion cycle?

Reference no: EM13271881

Questions Cloud

Explain the acid-base reaction between acetic acid : Predict the products of the acid-base reaction between acetic acid and methanamine. Draw the molecules or ions and include charges were needed.

Find the distance between adjacent bright fringes : Two narrow slits separated by 1.0mm are illuminated by 559nm light. Find the distance between adjacent bright fringes

What is the exact cost of trade credit as an annual rate : If your firm buys $100 worth of supplies on credit with terms 3/10 n30 and pays the bill on the 30thday after the purchase.

Define ionization energy is the energy needed to eject : Ionization energy is the energy needed to eject an electron from an atom or ion. calcluate the ionization energy, IE, of the one- electron ion B^4+

How long is the firms cash conversion cycle : Given these conditions, how long is the firm's cash conversion cycle?

Estimate the separation of the two slits : Light of wavelength 730nm falls on two slits and produces an interference pattern in which the fourth-order fringe is 53mm from the central fringe on a screen 3.0m away

What is trade credit : Given that accounts receivable represents a delay in the receipt of cash that could be put to good use, why do firms allow credit purchases at all?

Explain a ground state hydrogen atom absorbs a photon : A ground state hydrogen atom absorbs a photon of light having a wavelength of 92.085 nm it then gives off a photon having a wavelength of 902 nm. what is the final state of the hydrogen atom

Prepare the journal entry that wood-mode should make : Prepare the journal entry that Wood-Mode should make, assuming it signed a valid sales contract to sell the counters and received at the time of sale the $413,000 payment.

User Account

All Pages