Ch $15$: Assignment $-$ Working Capital Management

Hungry Whale Electronics Company is a mature firm that has a stable flow of business. The following data was taken from its financial

statements last year:

Hungry Whale's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to

complete the following table. $($Note: Use $365$ days as the length of a year in all calculations, and round all values to two decimal places.$)$

Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection

period uses average daily sales in its denominator. Why do these measures use different inputs?

Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which

goods are sold.

Current assets should be divided by sales, but current liabilities should be divided by the COGS.

The management at Hungry Whale Electronics Company wants to continue its internal discussions related to its cash management. One of finance