What effect would these policies have

Assignment Help Financial Accounting
Reference no: EM132927464

Question - Whitson Co. is looking for ways to shorten its cash conversion cycle. It has annual sales of $36,500,000, or $100,000 a day on a 365-day basis. The firm's cost of goods sold is 75% of sales. On average, the company has $9,000,000 in inventory and $8,000,000 in accounts receivable. Its CFO has proposed new policies that would result in a 20% reduction in both average inventories and accounts receivable. She also anticipates that these policies would reduce sales by 10%, while the payables deferral period would remain unchanged at 35 days. What effect would these policies have on the company's cash conversion cycle? Round to the nearest whole day.

Reference no: EM132927464

Questions Cloud

Define the concept of entrepreneurial leadership : Define the concept of Entrepreneurial Leadership, List and explain at least five (5) characteristics exhibited by modern Entrepreneurial Leaders
Describe current and projected trends : Describe current and projected trends regarding workplace health, personal safety, and security in the public cases. Based on those current and projected trends
Explain =approach to building a successful team : Explain own approach to building a successful team
Process of hiring multicultural personnel : You are Malta Bros, Human resource Manager of ABC Ltd. You are required to give an oral presentation in board meeting today on hiring diverse cultural personnel
What effect would these policies have : Whitson Co. is looking for ways to shorten its cash conversion cycle. What effect would these policies have on the company's cash conversion cycle
What is an unpresented cheque : 1. What are some reasons that cause the balance on the bank statement to differ from the cash balance on the books?
Explain the sourcing strategy for the recruitment : Explain the Sourcing strategy for the recruitment of the Warehouse Coordinator Position.
What is the interest and the maturity value : An executive borrowed $52000. The loan was for 15 months at a simple interest rate of 9%. What is the interest and the maturity value
Describe two pieces of information : Describe two pieces of information or advice that local, state/territory, or commonwealth government departments can provide on compliance.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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