Question: Manitoba Services is considering undertaking a new order that would
Manitoba Services is considering undertaking a new order that would cause its average days of revenues in payables (ADRP) to decrease from 58 days to 45 days, while its average collection period (ACP) will remain at 90 days and its average days revenues in inventory (ADRI) will fall from 98 days to 80 days. What will be the effect on its operating cycle and cash cycle if these estimates are correct?
Relevant QuestionsMB Corporation has a receivables turnover of 10, an inventory turnover of 15, and a payables turnover of 5. Calculate its cash conversion cycle. What does a negative cash conversion cycle tell you about MB Corporation’s ...Determine the operating cycle and cash conversion cycle for a company with inventory turnover of 6.25 times per year, receivables turnover of 10 times per year, and an average days of revenues in payables (ADRP) of 40 days.Suppose that ABC Inc. switches to 3/10 net 30 from net 30. It is estimated that 80 percent of customers will take advantage of the discount, while the remaining 20 percent will pay on day 30. The price will increase from $52 ...What are special purpose vehicles (SPVs)? What is the main advantage of SPVs? List a few forms of credit enhancement that are critical to SPVs.What is the purpose of credit analysis and how is it accomplished?
Post your question