Cash conversion cycle-operating cycle

Assignment Help Managerial Accounting
Reference no: EM1348643

Junior's Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory 65 days, pays its suppliers in 35 days, and collects its receivables in 15 days. The firm has a current annual outlay of $1,960,000 on operating cycle investments. Junior currently pays 10% for its negotiated financing (assume a 360 day year).

a) Calculate the firm's cash conversion cycle.
b) Calculate the firm's operating cycle
c) Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days.

Reference no: EM1348643

Determine the new break-even point

How would you comment the asset management performance in 2003 versus 2002? Justify your comments with all related ratios - Calculate the ROI and ROE for the 2 years and Prepa

Houston armadillos cost volume profit and graph

The Houston Armadillos, the minor-league baseball team, play their weekly games in small stadium just outside Houston. The stadium holds 10,000 people and tickets sell for $

What is the shadow price for electronic components

What is the shadow price for Electronic Components? Explain to management how they might use this to increase profits? Calculate the upper limit for which this shadow price

Determining cost volume profit analysis

Factors which must be taken in account when making decisions regarding price, such as any change in risk involved in cost-volume-profit structure; the link between short- an

Budget constraints in two period model

Explain how the budget constraint of househould in two-period model is affected by each of the following changes. In each case, do you think the household is better off or w

Bell company makes fax machines

Bell Company makes fax machines. Currently Bell makes all components of the fax machine in house. An outside company has offered to supply one component, part number B48 for $

Allocation of any underapplied or overapplied overhead

Allocation of any underapplied or overapplied overhead for the month is closest to - cost of goods sold at the end of the month on the basis of the overhead applied du

What is the forward price

Suppose that you enter into a 6-month forward contract on a nondividend-paying stock when the stock price is $30 and the risk-free interest rate is 12% per annum. What is t


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd