Sales outstanding on cash conversion cycle

Assignment Help Financial Management
Reference no: EM131915053

Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2013 sales (all on credit) were $102,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.37 times during the year. Its receivables balance at the end of the year was $13,178.03 and its payables balance at the end of the year was $7,400.02. Using this information calculate the firm's cash conversion cycle. Round your answer to the nearest whole. Round the days amounts in your intermediate calculations to the nearest whole day. Do not round other intermediate calculations.

Reference no: EM131915053

Questions Cloud

What is per-share value of van buren to harrison corporation : What is the per-share value of Van Buren to Harrison Corporation?
Appropriate discount rate for valuing the acquisition : What is the appropriate discount rate for valuing the acquisition?
Regression analysis is statistical technique : Regression analysis is a statistical technique that fits a line to observed data points so that the resulting equation can be used to forecast other data points
Black-scholes model to calculate value of the stock option : Use the Black-Scholes model to calculate the value of the stock option
Sales outstanding on cash conversion cycle : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle.
Company need to meet its target fixed assets and sales ratio : how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?
Calculate the present worth of annual costs : Refer to the present worth formula for a geometric gradient to calculate the present worth of annual costs.
What would be effective cost of bank loan : If the company could receive the funds from a bank at a rate of 9.5%, interest paid monthly, based on a 365-day year, what would be effective cost of bank loan.
How much is usnet transaction exposure : USNet, Inc., an American networking equipment firm, How much is USNet’s transaction exposure?

Reviews

Write a Review

Financial Management Questions & Answers

  Company uses straight voting

how much will it cost you to buy a seat if the company uses straight voting?

  What was total return from holding the stock

Jane Barhop purchased a stock for $45 one year ago. That stock is now worth $65. During the year, the stock paid a dividend of $2.50. What was Jane's total return from holding the stock?

  Which mix of tax benefits provides the most tax savings

Matt and Carrie are married, have two children, and file a joint return. Which mix of tax benefits provides the most tax savings?

  Determine the net present value for project

Determine the net present value (NPV) for the project. Determine the internal rate of return (IRR) for the project.

  Manufactures various hardware and software components

Megaware manufactures various hardware and software components. The dividend growth model is used by many investors to value stock.

  Interested in acquiring van buren corporation

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 6%, and the market risk premium is 7%.

  Business impact analysis and risk communication

Define and discuss the Risk Management function and its supporting sub functions of: Risk Assessment; Business Area Analysis, Business Impact Analysis, Risk Communication; and Risk-Based Decision Making.

  Prepare a cash budget for november through april

Assuming that the firm has a cash balance of $42,000 at the beginning of November and its desired minimum cash balance is $25,000, prepare a cash budget for November through April.

  Mathematical modeling

The company manufactures two types of product A and B made of plastic. The company received 3,000 lbs recycled plastic of product A and 10,800 lbs recycled plastic of product B. The company also receives industrial plastic of 24,000 lbs per month. De..

  What is the holding period return for your portfolio

Last year you purchased 650 shares of stock for $20.5 per share and 4 coupon bonds with 6% coupon rate for $1,000 each. Over the course of the year, you received dividends totaling $1.2 per share. Today stock is selling at $21.5 per share and bond is..

  Historical data refer to annual return or the stock prices

If I want to calculate expected return of a company using historical data, what kind of historical data should I use? Where can I get the historical data? does the historical data refer to annual return or the stock prices?

  How would you expect the bonds to react to announcement

Assume that DelCash Inc.’s debt is in the form of corporate bonds. How would you expect the bonds to react to the announcement?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd