+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
Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000
Select one of the above topics and research the following: What are the problematic aspects/areas of your chosen topic. Write a 'literature review' of the topic, that is, what
Do you think that the tax minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corporate executives? Why
Briefly identify and explain the principle motives for holding cash and near cash assets. What are the risk-return trade-off associated with inventory management?
Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both units and dollars.) Also prepare a schedule of expected cash collections, by
What is the difference between an Associate and a Subsidiary and and what is Goodwill and when is that applied - Prepare all journal entries assuming all application monies r
The work-in-process inventory at the end of August after allocation of any underapplied or overapplied overhead for the month is closest to - Evaluate the cost of goods
Compare and contrast financial and managerial accounting. Define fixed, variable, and mixed costs and explain the cost behaviors of each. Demonstrate the proper accounting for