The saliford corporation has a inventory conversion period

Reference no: EM13619788

Kanwai fans produces 25,000 fans per day at a cost of $7.50 each. It takes the firm 12 days to convert raw materials into a fan and sell it. Kanwai allows its customers 30 days in which to pay for the fans they purchase, and the firm generally pays its suppliers in 20 days.

(a) which is the length of kanwai's cash conversion cycle?

(b) If Kanwai always produces and sells 25,000 fans per day, what amount of working capital must it finance?

(c) by what amount could kanwai reduce its working capital financing needs if it was able to strctch its payables deferral period to 25 days?

The Saliford corporation has a inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 day.

(a) what is the length of the firm's cash conversion cycle?

(b) If Shliford's annual sales are $3,960,000 and all sales are on credit, what is the average balance in accounts receivable?

(d) What would happen to Saliford's cash conversion cycle if, on average, inventories could be turned over eight times a year?

Reference no: EM13619788

Questions Cloud

Compute the cell potential at 55 degc if the fe2 and sn2 : one half cell of an electrochemical cell consists of a pure iron electrode in a solution of fe2 the other is a tin

A statistical model for appraisal value of houses is needed : a statistical model for appraisal value of houses is needed. an important predictor variable of appraised value is the

What managerial assessments may you make about an : what managerial assessments may you make about an organization that has a profit and negative cash flow in the same

If 60 of us petroleum use goes for transportation and 1 of : if 60 of u.s. petroleum use goes for transportation and 1 of this goes for buses how much oil could be saved per year

The saliford corporation has a inventory conversion period : kanwai fans produces 25000 fans per day at a cost of 7.50 each. it takes the firm 12 days to convert raw materials into

If 60 of us petroleum use goes for transportation and 1 of : if 60 of u.s. petroleum use goes for transportation and 1 of this goes for buses how much oil could be saved per year

What will a spring scale read for the weight of a 54- woman : what will a spring scale read for the weight of a 54- woman in an elevator that moves upward with constant speed 5.0 ?

The niagra corporation is considering two mutually : the niagra corporation is considering two mutually exclusive projects. both require an initial outlay of 10000 and will

Locate the results of a recent survey in a newspaper : locate the results of a recent survey in a newspaper magazine or internet article. outline the survey data so that your

User Account

All Pages