Question: = The Yubaba Corp. has Revenues = $200, COGS - $150, Accounts Receivable = $21.92, Inventory = $10.27, and Accounts Payable = $8.22. The
= The Yubaba Corp. has Revenues = $200, COGS - $150, Accounts Receivable = $21.92, Inventory = $10.27, and Accounts Payable = $8.22. The company has just received a shipment from one of its suppliers with an invoice that states the payment terms are 1/15 Net 45. Note: Yubaba can borrow from its bank at an effective annual interest rate = 15%. What are Yubaba's DIO, DSO, and DPO? Round your answers to the nearest whole day. What is Yubaba's Cash Conversion Cycle? What is the effective annual interest rate charged by Yubaba's supplier if Yubaba choses to pay its bill on the last possible day acceptable to the supplier (round to the nearest whole percentage point)? Should Yubaba pay its bill on the later date? DIO = Days DSO = Days DPO = Days CCC = Days Effective Annual Interest Rate = Pay On Last Possible Day (Yes or No): 24
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
