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?

User Account

All Pages