How much working capital must the company finance

Reference no: EM133251893

Question - Foxconn makes 16,000 iPods a day at a cost of $15 each. The production process takes 20 days, including delivery. Foxconn pays its suppliers on average after 23 days and gets paid by Apple 60 days after delivery.

Part 1 - How long is Foxconn's cash cycle (in days)?

Part 2 - How much working capital must the company finance?

Part 3 - If Foxconn could pay its suppliers only after 43 days, how much working capital would it save?

Reference no: EM133251893

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