+1-415-670-9189
info@expertsmind.com
Cash conversion cycle-cash freed up-pre-tax profit
Course:- Managerial Accounting
Reference No.:- EM1349699




Assignment Help
Assignment Help >> Managerial Accounting

Primrose Corp has $15 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 8% rate. What is Primrose's cash conversion cycle (CCC)? If Primrose could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting either sales or cost of goods sold, what would the new CCC be, how much cash would be freed up, and how would that affect pre-tax profits?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Managerial Accounting) Materials
Calculate the total direct labor cost for the quarter if the company follows its no lay-off policy, but pays time-and-a-half for every hour worked in excess of 960 hours in
Ferguson Inc., has annual sales of $36,500,000 or $100,000 a day on a 365-day basis. On average, the company has $8,000,000 in inventory and $12,000,000 in accounts receivab
Recognize three key learning points with respect to application of concepts like fixed costs, variable costs, contribution margin, breakeven analysis, indifference point, an
Prepare a multiple regression table using all three of the activities as the independent variable. Using the output from the multiple regression - estimate factory cost in
What is the liability in dollars on March 1? What is the liability in dollars on June 1? If Friedle pays on June 1, is there an exchange gain or loss? If so, how much is
Review the 2014 Statement of Cash Flow budget. Based on your research, write a report that indicates whether you believe the cash from operations will increase or decrease.
Barker Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company''s first processing department for a recen
Calculate the flexed budget and the key variances between budgeted and actual results and reconcile the original budget and present the relationship between the budgeted and t