Princess Systems, Inc. has the following turnover ratios: Receivables turnover = 6.0x; Inventory turnover = 4.0x; Payables

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Princess Systems, Inc. has the following turnover ratios: Receivables turnover = 6.0x; Inventory turnover = 4.0x; Payables turnover = 3.75x

(a) Now assume that the firm’s days inventory held (DIH) holds constant at the value you obtained in

(b) Above (when the inventory turnover was 5.5x), but the payables turnover increases to 5.3x. If the firm wants its cash conversion period to be no greater than 35 days, what must be the firm’s new receivables turnover?

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Statistics The Art And Science Of Learning From Data

ISBN: 9780321755940

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Authors: Alan Agresti, Christine A. Franklin

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Question Posted: Apr 13, 2012 07:51 AM

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Princess Systems, Inc. has the following turnover ratios: Receivables turnover = 6.0x; Inventory turnover = 4.0x; Payables

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