Question: Calculate the cash gap information requested below using the Game Stop financial statements. Assume a 7% interest rate. Show your work. Cash Gap Days: ______________________________

Calculate the cash gap information requested below using the Game Stop financial statements. Assume a 7% interest rate. Show your work.

Cash Gap Days: ______________________________

Total Amount of Money Needed to Finance Cash Gap: ______________________________

Total Cost of Financing the Cash Gap (at 7%): ______________________________

Cost Savings Realized Reducing Cash Gap by One Day: ______________________________

FORMULAS:

Inventory Days Formula: Inventory/(COGS/365)

Days Receivable Formula: Accounts Receivable/(Revenue/365)

Days Payable Formula: Accounts Payable/(COGS/365)

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