Carroll & king Corporation has $6 million of inventory and $2.1 million of accounts receivable. Its average
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Carroll & king Corporation has $6 million of inventory and $2.1 million of accounts receivable. Its average daily sales is $120,000. The company's payables deferral period is 30 days with total account payables of $1,200,000. Suppose this company is expecting to increase its payable deferral period to 35 days and decrease its inventory conversion period to 100 days, how much will the company expect its Free Cash Flow to increase due to these changes? Assume its days sales outstanding remains unchanged.
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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