What will be the firm cash cycle

Assignment Help Financial Management

Reference no: EM131937307

Suppose that Freddie's Fries has annual sales of $660,000; cost of goods sold of $535,000; average inventories of $25,000; average accounts receivable of $41,000, and an average accounts payable balance of $36,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)

Reference no: EM131937307

Questions Cloud

The firm required rate of return : If the tax rate on ordinary income is 40 percent and the firm’s required rate of return is 16 percent, should the firm purchase the system? Why?

What is weighted average cost of capital : What is the weighted average cost of capital?

Compute payback statistic for project : Compute the Payback statistic for Project X and recommend whether the firm should accept or reject the project

Retained earnings account after the stock dividend : Determine the balance in the retained earnings account after the stock dividend.

What will be the firm cash cycle : Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle?

Variety of products and known for power and durability : Diamond Electronics, Inc is a leading producer of batteries, which are used in a wide variety of products and known for its power and durability.

Which step in risk management process is most important : Which step in the risk management process is most important?

Reflected in the analysis of capital budgeting project : Which of the following is NOT a relevant cash flow and thus should NOT be reflected in the analysis of a capital budgeting project?

At what price will stock reach equilibrium : At what price will the stock reach an “equilibrium” at which it is perceived as fairly priced today?

User Account

All Pages