A firm is considering several policy changes to increase

Assignment Help Accounting Basics

Reference no: EM13483042

A firm is considering several policy changes to increase sales. It will increase the variety of gods it keeps in inventory, but this will increase inventory by $25,000. It will offer more liberal sales terms, but this will esult in average receivables increasing to $80,000. These actions are expected to increase sales to $950,000 per year, and cost of goods will remain at 70% of sales. Because of the firm's increased purchases for its own production needs, average payables will increase to $50,000. What effect will these changes have on the firm's cash conversion cycle?The cash conversion cyclewill increase or decrease by?

Reference no: EM13483042

Questions Cloud

What is the expected return on equity under each current : the rentz corp. is attempting to determine the optimal level of current assets for the coming year. management expects

What is fund accounting how does it compare to proprietary : what is fund accounting? how does it compare to proprietary accounting? why is fund accounting necessary? what are the

What are some examples of government and not-for-profit : what are some examples of government and not-for-profit organizations? how do proprietary businesses measure success?

What is opportunity cost and why is it an important concept : what is opportunity cost and why is it an important concept in the capital budgeting process? the opportunity cost

A firm is considering several policy changes to increase : a firm is considering several policy changes to increase sales. it will increase the variety of gods it keeps in

What type of lease is this to walden be specific and : walden company leases manufacturing equipment from preston rentals co. on january 1 2012. the following data pertain to

Its highest-grade perfume seduction and a residue that is : exotic aroma company buys bulk flowers and processes them into perfumes in a two-stage process. its highest-grade

Find an industry that generates by-products as a result of : find an industry that generates by-products as a result of creating a main product. identify what unique accounting

On january 1 2012 wilcox company purchased the bonds of : below is information regarding the investment portfolio of wilcox corp. use the straight-line method to amortize any

User Account

All Pages