What is primrose cash conversion cycle

Assignment Help Accounting Basics
Reference no: EM13689047

Primrose Corp has $15million of sales, $2million of inventories, $3million of receivables and $1million of payables. Its 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?

 

 

Reference no: EM13689047

Questions Cloud

Determine the radial component of the linear acceleration : A 43cm diameter wheel accelerates uniformly about its center from 130rpm to 330rpm in 4.0s, Determine the radial component of the linear acceleration of a point on the edge of the wheel 1.0s after it has started accelerating
How fast must a centrifuge rotate : How fast (in rpm) must a centrifuge rotate if a particle 6.6cm from the axis of rotation is to experience an acceleration of 200000g's
How far up the incline will it go : A hollow cylinder (hoop) is rolling on a horizontal surface at speed 4.2m/s when it reaches an 18 degree incline. How far up the incline will it go
What is the intensity of the superposition of the two : A sound wave with intensity 40 mW/m2 interferes constructively with a sound wave that has an intensity of 13 mW/m2.  What is the intensity of the superposition of the two
What is primrose cash conversion cycle : Primrose Corp has $15million of sales, $2million of inventories, $3million of receivables and $1million of payables. Its 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 convers..
Calculate the linear speed of the yo-yo : A yo-yo is made of two solid cylindrical disks, each of mass 0.053kg and diameter 0.078m, Use conservation of energy to calculate the linear speed of the yo-yo when it reaches the end of its 1.1m long string if it is released from rest
What is the wavelength of the light in water : Light of wavelength 0.540 µm (in air) enters the water in a swimming pool. The speed of light in water is 0.710 times the speed in air. What is the wavelength of the light in water
What force is necessary to apply to it to lift : If the input piston of a hydraulic jack has a radius of 0.005 m, what force is necessary to apply to it to lift a 1500-kg car on the output piston whose radius is 0.5 m
Why is some trade credit called free : Why is some trade credit called free while other credit is called costly? If a firm buys on terms 2/10, net 30, pays at the end of the 30th day and typically shows $300,000 of accounts payable on its balance sheet would the entire $300,000 be free cr..

Reviews

Write a Review

Accounting Basics Questions & Answers

  What would be the total variable maintenance cost at an

at an activity level of 5300 machine-hours in a month clyburn corporations total variable maintenance cost is 114268

  Accounting assignmentpart one please provide clear

accounting assignmentpart one please provide clear calculations and explanations submit supporting excel file if

  The following are three independent situations where the

the following are three independent situations where the reporting entity for which financial statements are being

  Profit equation of hockory cabinet and furniture company

The hockory Cabinet and furniture Company makes chairs. The fixed cost per month of making chairs is $7,500, and the variable cot per chair is $40. Price is related to demand according to the following linear equation.

  Individual retirement accounts

Individual Retirement Accounts

  Assume a company paid dividend of 15 cents on its ordinary

suppose a company paid dividend of 15 cents on its ordinary share of n1.50 each. the company expected to grow its

  Hoehn manufacturing company experienced the following

having trouble with finding inventory results because im not sure where the 14000sold it for 25000. material cost

  What are some of the ethical responsibilities

What are some of the ethical responsibilities and obligations that management accountants have within an organization? Provide some examples. Are these responsibilities different than the obligations for financial accountants?

  Undertake a high-risk gold mining venture in canada

Hazel Holden and Cedric Dalton are organizing Calgary Metals Unlimited Inc. to undertake a high-risk gold-mining venture in Canada.

  Husky enterprises recently sold an issue of 10-year

husky enterprises recently sold an issue of 10-year maturity bonds. the bonds were sold at a deep discount price of

  Calculate stickits earnings per share for 2010 that will be

during the year ended december 31 2011 stickit inc. split its stock on a 4-for-1 basis. in its annual report for 2010

  Teness construction negotiates a lump-sum purchase of

teness construction negotiates a lump-sum purchase of several assets from a company that is going out of business.the

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