What is sinag enterprises cash conversion cycle

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Question - Sinag Enterprises is looking to increase its profitability through more efficient management of its working capital. In 2021, the firm had $12 million in credit sales and $8 million in cost of goods sold. They maintained $2 million worth of inventory, $1 million in outstanding accounts payable, and $4 million in outstanding accounts receivable. Round your answers to the nearest whole day.

1. What is Sinag Enterprises' operating and cash conversion cycle?

2. The firm's suppliers is offering 90 days credit term to increase business, how is Sinag's cash conversion cycle affected if it takes full advantage of the new credit terms?

3. What is your recommendation to the company with regard to its working-capital management practices and why?

Reference no: EM133168405

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