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

How do you see using managerial accounting information

How do you see using this managerial accounting information? Participate in discussion by providing suggestions for other uses of managerial accounting information or by ask

Consider the following scenario

The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The

How to charge costs for defending patents

Wriglee, Inc. went to court this year and successfully defended its patent from infringement by the competitor. The cost of this defense must be charged to:

Which of the variances are of greatest concern

Resset Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. Applying the management by exception approach, which of the

Low cost or a differentiated product strategy

Prestige Computers is trying to decide whether to produce and sell a new home computer software package that includes the ability to interface with a sewing machine and a va

Compute new weighted average cost of capital for donegal inc

Calculate the new weighted average cost of capital for Donegal, Inc. Calculate the EVA for Donegal, Inc., including the new products. Is the new investment a good idea?

How would you define what a manager is

How would you define what a manager is? Do you think a manager can be a "good" manager if they lack strong communication skills? I think this is an important trait, but ho

Do you need additional training in specific areas

Do you need additional training in specific areas of communication? How might you improve your current communication skills to prepare you for advancement in your profession?


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