Part What is the company's operating cycle? How does it compare to the industry average of...

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Part What is the company's operating cycle? How does it compare to the industry average of 72 days? (2 Marks) What is the company's cash conversion cycle? How does it compare to the industry average of 42 days? What is driving the difference? (3 Marks) a. If the DSO for Smith Brothers was 53 days and the DPO was 34 days what advice could you provide Smith Brothers in regard to their working capital management? If this issue is not addressed what is the potential impact? Answer in no more than two sentences. (3 Marks) b. If the DSI of Happy Fish Traders was 45 days and the Industry average was 12 days what advice could you give to Happy Fish Traders in regard to their Inventory Management? Answer in no more than two sentences. (3 Marks) Part What is the company's operating cycle? How does it compare to the industry average of 72 days? (2 Marks) What is the company's cash conversion cycle? How does it compare to the industry average of 42 days? What is driving the difference? (3 Marks) a. If the DSO for Smith Brothers was 53 days and the DPO was 34 days what advice could you provide Smith Brothers in regard to their working capital management? If this issue is not addressed what is the potential impact? Answer in no more than two sentences. (3 Marks) b. If the DSI of Happy Fish Traders was 45 days and the Industry average was 12 days what advice could you give to Happy Fish Traders in regard to their Inventory Management? Answer in no more than two sentences. (3 Marks)

Answer rating: 100% (QA)

1 Operating Cycle Comparison Given Assumed Operating Cycle 60 days Industry Average Operating Cycle ... View the full answer