If primrose could lower its inventories and receivables by

Assignment Help Finance Basics

Reference no: EM13621651

Primrose Corp has $13 million of sales, $3 million of inventories, $2 million of receivables, and $3 million of payables. Its cost of goods sold is 85% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations. Do not round intermediate steps.

1. What is Primrose's cash conversion cycle (CCC)? Round your answer to two decimal places.

2. If Primrose could lower its inventories and receivables by 11% each and increase its payables by 11%, all without affecting sales or cost of goods sold, what would be the new CCC? Round your answer to two decimal places.

3. How much cash would be freed-up? Round your answer to the nearest cent.

4. By how much would pre-tax profits change? Round your answer to the nearest cent.

Reference no: EM13621651

Questions Cloud

Erenco is an up-and-coming stone quarry company a recent : erenco is an up-and-coming stone quarry company. a recent report reflecting the general sentiment of all market

In a interference experiment d 4mm l 1m the second : in a interference experiment d 4mm l 1m the second maximum n 2 appears on the screen at a distance 4mm from the

Consider two types of steady-state expansionthrottling : consider two types of steady-state expansionthrottling devices for ammonia 1 a rigid valve amp 2 a turbine that is used

In a interference experiment d 4mm l 1m the second : in a interference experiment d 4mm l 1m the second maximum n 2 appears on the screen at a distance 4mm from the

If primrose could lower its inventories and receivables by : primrose corp has 13 million of sales 3 million of inventories 2 million of receivables and 3 million of payables. its

A clinical trial tests a methods designed to increase the : a clinical trial tests a methods designed to increase the probability of conceiving a girl. in the study 540 babies

Determine the maximum charge on the capacitor what is the : an uncharged 5.0 micro farad capacitor and a resistor are connected in sweries to a 12-v battery and an open switch to

Do you agree or disagree that the executives ethical : do executives in organizations have an ethical responsibility to think about the fairness of the transactions or the

Calculate the change in ph when 600 ml of 0100 m hclaq is : calculate the change in ph when 6.00 ml of 0.100 m hclaq is added to 100.0 ml of a buffer solution that is 0.100 m in

User Account

All Pages