Question: Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an

Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. the firm has annual sales of $3.5 million and cost of goods sold of $2.4 million.

a. Caluclate the firm's operating cycle and cash conversion cycle.

b. What is the dollar value of inventory held by the firm?

c. If the firm could reduce the average age of its inventory from 73 days to 63 days by how much would it reduce its dollar investment in working capital?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

14-2 Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The...

LG 2 P 1 5 - 2 Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 3 5 days, and has an average collection period of 6 0...

P142 Changing cash conversion cycle Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The...

Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an average collection period of 50 days. The firm has...

Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 51 days. The firm has...

Homework: Homework 7\ Question 1, P15-2 (similar to)\ HW Score: 0%,0 of 40 points\ Part 1 of 4\ Points: 0 of 4\ Question list\ Changing cash conversion cycle Camp Manufacturing turns over its...

P15-2 Changing cash conversion cycle Camp Manufacturing turns over its inventory eight times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The...

Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm has...

Each of the 6-lb bars AB and BC is of length h L = 25 in. A horizontal force P of magnitude 5 lb is applied to bar BC. For the position shown, determine (a) The distance b for which the bars move as...

Ovate, Inc., earns $140,000 in book income before tax and is subject to a 35% marginal Federal income tax rate. Ovate records a single temporary difference. Warranty expenses deducted for book...

BE 1 5 1 Lease classification LO 1 5 1 , LO 1 5 2 [ BE 1 5 1 and 1 5 2 are two variations of the same basic situation. ] Corinth Co . leased non - specialized equipment to Athens Corporation for an...

Equipment can be categorized according to the functions performed. Which of the following would not be a category of materi Multiple Choice Manual. Receiving. Sortation. Storage. Shipping /...

List five words you and your friends use that few other people would recognize.

In a sense, ones language is an expression of ones culture; it is culture expressing itself in sound. As you interact with persons from cultures different than your own, try to appreciate that the...

When speaking to others, note how your grammar might reflect sexism and be mindful of your use of gendered terminology.