Calculating the cash conversion? cycle

Assignment Help Finance Basics
Reference no: EM131957006

(Calculating the cash conversion? cycle)

Network Solutions just introduced a? new, fully automated manufacturing plant that produces 2000 wireless routers per day with materials costs of$40 per router and no other costs. The average number of days a router is held in inventory before being sold is 67 days. In? addition, they generally pay their suppliers in 12 days, while collecting from their customers after 21 days.

Please compute: If they stretched their payments to suppliers from 12 days to 32 ?days, the working capital would be reduced by? (Round to the nearest? dollar.) 

Reference no: EM131957006

Questions Cloud

Potential banks that agreed to lend the firm : Willy Café Inc. needs to borrow $100,000 for a period of one year. There are three potential banks that agreed to lend the firm,
What is the value of firm : Since the business is incorporated, you can assume that it will operate indefinitely into the future. What is the value of your firm?
Period cash flow present value : The sensitivity of a single period cash flow's present value to interest rate fluctuations depends inversely on the time horizon length at which the cash flow
What reaction should investors in appollo ltd shares : Appollo Ltd shares have a beta of 2.15. If the market's expected return decreases by 12 percent, what reaction should investors in Appollo Ltd shares expect?
Calculating the cash conversion? cycle : Network Solutions just introduced a? new, fully automated manufacturing plant that produces 2000 wireless routers per day with materials costs
Capital impact cash flows in a capital budgeting analysis : 1. Explain how changes in net working capital impact cash flows in a capital budgeting analysis
Why are informal settings such as dinners useful : If you had been on eof the managers at the Italian resturant,What would your views of the meeting been ?
Lesson for international financial managers : 1. Describe purchasing power parity and its lesson for international financial managers
Dissertation on Electromagnetic Data Communication : Need dissertation in electronic and electrical on given topic. Topic: Electromagnetic Data Communication for Medical Implants

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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