The Robinson Company has the current assets and current liabilities for the two years listed in the text. If sales in 2013 were $1.2 million and sales in 2014 were $1.3 million and cost of goods sold were 70 percent of sales, how long were Robinson’s operating cycles and cash conversion cycles in each of these years? What caused them to change during this time?
Answer to relevant QuestionsThe Robinson Company from Problem 2 had net sales of $1,200,000 in 2013 and $1,300,000 in 2014. a. Determine the receivables turnover in each year. b. Calculate the average collection period for each year. c. Based on the ...Financial statements for the Genatron Manufacturing Corporation for the years 2013 and 2014 are listed in the text. Calculate Genatron’s operating cycle and cash conversion cycle for 2013 and 2014. Why did they change ...Redo Problem number 14, using the monthly sales estimates listed in the text. Explain the strategies businesses can use to finance their assets with short-term and long-term funds. What are the primary reasons for using trade credit for short-term financing?
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