Question: Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 3 8 days, and has
Changing cash conversion cycle Camp Manufacturing turns over its inventory times each year, has an average payment period of days, and has an average collection period of days. The firm has annual sales of $ million and cost of goods sold of $ million. Use a day year.
a Camp's operating cycle, OC is days. Round to the nearest whole number.
b Camp's cash conversion cycle, CCC is days. Round to the nearest whole number.
c The dollar value of inventory held by the firm is $ Round to the nearest dollar.
d If the firm could reduce the average age of its inventory from days to days, it would reduce its dollar investment in working capital by $ Round to the nearest dollar.
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