MB 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 business?
Answer to relevant QuestionsWhy is the efficient utilization of net working capital important?1. Which of the following is not near-cash?a. T-billsb. Commercial paperc. Bankers’ acceptancesd. Long-term debt2. Which of the following descriptions about near-cash is false?a. Low returnsb. Great liquidityc. Minimal ...East Shore Inc. has an ACP of 60 days and daily credit sales of $75,000. A factor offers a 60-day accounts receivable loan equal to 90 percent of accounts receivable. The quoted interest rate is 10 percent and the commission ...Suppose Sio Inc. has 60 days of accounts receivable (AR) of $900,000 on its books. A factor offers a 60-day AR loan equal to 90 percent of AR. The quoted interest rate is 8 percent, and there is a commission fee of 0.5 ...What are some of the advantages of carrying inventories?
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