Calculate the cash cycle (in days) based on the following information (keep twodecimal places).VariableInventoryAccounts receivableAccounts payableBeginning of the yearEnd of the year$2500$4000$3900$3000$1500$1000Net sales over the year is $14000 and costs of goods sold is $8000.Your Answer:Answer

The cash conversion cycle (CCC) is a key financial metric used to determine the number of days funds…

Answered: Calculate the cash cycle (in days)…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Find cash conversion cycle. Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 46 days b. 31 days c. 42 days d. 38 days e. 34 days
Using the given, compute the cash conversion cycle of the entity. Use 360 days in a year Beginning Ending Average Trade recievables 300,000 350,000 325,000 Inventory 200,000 800,000 ??? Trade payables 300,000 ??? 650,000 For the year Sales(all on credit) 2,600,000 Purchases 1,950,000 Interpret the given and the cash conversion cycle.
Calculate Cash Conversion Cycle (CCC) from the following; Average collection period 30 Average payment period - 20 Average inventory -6,000 COGS per day - 150 a. 70 days b. 90 days c. 30 days d. 50 days
Considering the following information, calculate the cash conversion cycle. There are 365 days in a year. A/R $ 25,000 Inventories $ 50,000 A/P $ 30,000 Accruals $ 10,000 Bank Loan $ 45,000 Net Sales $ 500,000 COGS $ 200,000 36.5 days. 73 days. 18.25 days. 91.25 days. -73 days. -45 days.
Consider the following cash flows: Year Cash Flow 07234 -$ 7,600 1 2,150 4,900 1,950 1,650 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period years
Inmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is 40 days, and the average age of inventory is 48 days. Assuming a 365-day year, what is the length of its cash conversion cycle? Please explain process and show calculations.
If the days inventory is 50, days receivable is 17 and days payable is 25 and assuming 365 days in a year, then the cash conversion cycle is equal to: a. 92 Days b. 58 Days c. 42 Days d. 67 Days e. 75 Days
Consider the following cash flows: Year Cash Flow -$6,600 1,900 3,900 1,700 1,400 What is the payback period for the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payback period years 0123 4
For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow Present Value Years Interest Rate $ 33,100 6 10 % 30,700 8 8 $ 170,000 17 13 $ 243,300 24 12 %24
Consider the following cash flows: Year 0 Cash Flow -$ 5,100 es 01234 1,500 2,600 1,300 1,000 Check my work 4 What is the payback period for the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Payback period -32.16 years
What is the present value of the following cash flow? $1,100 $700 (+) 4% 6% 7% 3 4 () $400 Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is 24.
Consider the following cash flows: Cash Flow Year 0 -$ 33,500 1 14,500 2 17,200 3 11,900 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %

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