Reference no: EM132518231
Cash conversion cycle
Cash management is a very important function of managers. Companies need to manage their operations in a way that they can sustain growth and yet not run out of cash.
Consider the case of the Red Hamster Manufacturing Corporation:
- Red Hamster Manufacturing Corporation has forecasted sales of $30,000,000 for next year and expects its cost of goods sold (COGS) to remain at 60% of sales. Currently, the firm holds $3,100,000 in inventories, $2,100,000 in accounts receivable, and $2,500,000 in accounts payable.
Question 1: Approximately how long does it take Red Hamster Manufacturing to convert its raw materials to its finished products and then to sell those goods? (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
47.15 days
62.86 days
66.00 days
44.00 days
On average, it takes (a. 28.11 days, b. 25.55 days, c. 20.44 days, d. 19.16 days) from the time a sale is made until the time cash is collected from customers.
Red Hamster Manufacturing relies on customer credit when it buys raw materials from its suppliers. On average, it takes (a. 58.29 days, b. 50.69 days, c. 43.09 days, 40.55 days) after the firm purchases materials before it sends cash to its suppliers. The length of Red Hamster Manufacturing's cash conversion cycle (CCC) is (a. 32.06, b. 37.72). In general, firms prefer a (a. longer, b. shorter) CCC.
Question 2: What is the length of Red Hamster Manufacturing's cash conversion cycle (CCC)?
45.26 days
37.72 days
32.06 days
33.95 days
|
How much interest did pay in the fourteenth year only
: All principal and interest, what was the total cost of your mortgage over the 30 years? How much interest did you pay in the 14th year only?
|
|
Find current asset finance policy consistent with statement
: All permanent assets, but short-term debt finances temporary current assets. Which current asset financing policy is consistent with this statement?
|
|
Three key attributes of human attackers
: According to the author of this book, there are three key attributes of human attackers, as follows:
|
|
BUSI 3423 Intermediate Accounting Assignment
: BUSI 3423 Intermediate Accounting Assignment Help and Solution, Yorkville University - Assessment Writing Service - Prepare Dragonite's journal entry to record
|
|
What is the length of red hamster manufacturing
: Approximately how long does it take Red Hamster Manufacturing to convert its raw materials to its finished products and then to sell those goods?
|
|
Why do organization have information deficiency problem
: Discuss the relationship between data, information, and knowledge. Why do organization have information deficiency problem?
|
|
Compute the total cost then using the straight line
: Compute the total cost, then using the straight line and units of activity methods, show a schedule that shows the annual depreciation expense
|
|
How you would reduce potential vulnerabilities
: Explain how you would reduce potential vulnerabilities, protect against intrusion attempts, and better anticipate future threats.
|
|
Define par value and discuss the significance in accounting
: Companies frequently issue both preferred stock and common stock. What are the major differences in the rights of stockholders between two classes of stock?
|