+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
Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 45 days and an average payment period of 30 days. Calculate the firm's
You need to prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2014 to June 30, 2014 for Henron, Inc (a fictional
The following materials standards have been established for a particular product: What is the materials quantity variance for the month?
Fail to reject the null hypothesis, there is not significant evidence that the proportions differ.  Reject the null hypothesis, there is significant evidence that the proporti
Pick a costing method: process, job, or activity based. Explain the nature of your chosen method. What types of organizations should choose that method?
Measurement in the context of accounting The diverse measurement methods developed for different kinds of assets propose that standard setters are confused regarding the n
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 uni
What will happen to the number of unit that will be sold if the price is raised to the one you calculated in part c? Explain why setting price by marking up cost is inherently