Cash management is a very important function of managers. Companies need to manage their operations in a
Question:
Cash management is a very important function of managers. Companies need to manage their operations in a way that they can sustain growth and yet not run out of cash.
Consider the case of the Red Hamster Manufacturing Corporation:
Red Hamster Manufacturing Corporation has forecasted sales of $30,000,000 for next year and expects its cost of goods sold (COGS) to remain at 60% of sales. Currently, the firm holds $3,200,000 in inventories, $2,300,000 in accounts receivable, and $2,500,000 in accounts payable.
Approximately how long does it take Red Hamster Manufacturing to convert its raw materials to its finished products and then to sell those goods? (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr