What is parramore cash conversion cycle

Assignment Help Financial Management

Reference no: EM131917038

Parramore Corp has $13 million of sales, $3 million of inventories, $2 million of receivables, and $1 million of payables. Its cost of goods sold is 75% 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.

What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places.

____ days

If Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold, what would be the new CCC? Do not round intermediate calculations. Round your answer to two decimal places.

____ days

How much cash would be freed up, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.

____$

By how much would pretax profits change, if Parramore could lower its inventories and receivables by 8% each and increase its payables by 8%, all without affecting sales or cost of goods sold? Do not round intermediate calculations. Round your answer to the nearest cent. Write out your answer completely. For Example, 13.2 million should be entered as 13,200,000.

____$

Reference no: EM131917038

Questions Cloud

Isotropic harmonic potential : Show that, if the particles do not interact and there are no spin-orbit forces, the degeneracies of the three lowest energy values are 1, 12, 39

What is the average amount of receivables : What is the days sales outstanding. What is the average amount of receivables? What is the percentage cost of trade credit to customers who take the discount?

How does the mixture of histories and cultures combine : Write an essay discussing the MIXTURE of the two periods mentioned above. How does the mixture of two different histories and cultures combine.

Coefficient of kinetic friction between the box and the floo : What is the coefficient of kinetic friction between the box and the floor?

What is parramore cash conversion cycle : What is Parramore's cash conversion cycle (CCC)?

Crate move horizontally at constant velocity : According to the Newtons Law of dynamics what should be the magnitude and direction of the third force to make the crate move horizontally at constant velocity.

Summarize all of the facts supporting denial of victims fund : Summarize all of the facts in favor of a legitimate claim to the victims' funds. Summarize all of the facts supporting denial of the victims' funds.

What is the gravitational force between the masses : What is the gravitational force between the masses if the distance rises to 1 m?

What strategies would your intervention include : In a 4 page Microsoft Word document, express your views. Are these strategies effective? Why or why not? What strategies would your intervention include?

User Account

All Pages