Question: please answer , thank you Cash Conversion Cycle 1. You have recently been hired to improve the performance of Multiplex Corporation which has been experiencing
Cash Conversion Cycle 1. You have recently been hired to improve the performance of Multiplex Corporation which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is your estimate of the firm's current cash conversion cycle? Inventory balance S120,000 Annual sales = $600,000 Accounts receivable = $160,000 Accounts payable = $25,000 Total annual purchases $360,000 Cost of goods sold represent 80% of sales Purchases credit terms: net 30 days Receivables credit terms, net 50 days
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