The following financial information is for Ambroise Industries Inc.: Ambroise is

The following financial information is for Ambroise Industries Inc.:
The following financial information is for Ambroise Industries Inc.:
Ambroise is

Ambroise is a distributor of auto parts operating in eastern Ontario that offers 30-day terms and has all sales on credit. The company has a large inventory due to the number of parts it stocks for different makes and models of cars. Most of its suppliers offer terms of 30 days, and Ambroise tries to stay on good terms with its supplies by paying on time.
Required:
a. What is the average time it takes Ambroise to collect its accounts receivable? How does that compare with the credit terms that the company offers?
b. What is the average length of time that inventor)' is on hand?
c. What is the average length of time that it takes Ambroise to pay its payables? How does that compare to the credit terms it is offered?
d. The operating cycle is the length of time from when a company purchases an item of inventory to when it collects cash from its sale. How long is Ambroise's operating cycle?
e. Assume that Ambroise finances its inventory with a working capital loan from the bank. If Ambroise could improve its inventory management system and reduce the inventory holding period to an average of 50 days, how much lower would the company's bank loan be?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...

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