What is the length of the firms cash conversion cycle

Assignment Help Financial Management
Reference no: EM131487750

Negus Enterprises has an inventory conversion period of 62 days, an average collection period of 41 days, and a payables deferral period of 29 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations.

What is the length of the firm's cash conversion cycle?

days

If Negus's annual sales are $3,107,475 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar.

How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places.

Reference no: EM131487750

Questions Cloud

What will loan-to-value ratio be at the end of five-year : A company is trying to structure a loan with the Bank of California. what will the loan-to-value ratio be at the end of the five-year period?
Developing a marketing strategy and developing a marketing : In Chapter 11 page 338 through 342 read "Developing a Marketing Strategy and Developing a Marketing Mix."
Identify some methods to make a blocking call non-blocking : Identify some methods to make a blocking call non-blocking. Discuss the key difference(s) amongst these methods.
Research the the tuskegee syphilis experiment : Research the "The Tuskegee syphilis experiment." 1. What have we learnt from this case? (in 100 words or more)
What is the length of the firms cash conversion cycle : What is the length of the firm's cash conversion cycle?
How many times a customer generated an invoice : Write SQL statements to answer the following questions from the ‘assignment5'Database: Answer all questions.
Prepare the statement of cash flows using excel : You will find the company's data needed in the Excel. You need to prepare the statement of cash flows using excel, excel skills such as reference and formulas.
Who can serve as the mediator : Who can serve as the mediator (what are the qualifications) if the court directs the mediation
How would a high performance organization : In your view, how would a high performance organization (HPO) be as a result of the above impact?

Reviews

Write a Review

Financial Management Questions & Answers

  Reducing healthcare costs with supply chain best practices

Discuss what a supply chain is by focusing on the flow of products, cash and information between different stages of a supply chain. Read the article, “Reducing healthcare costs with supply chain best practices”.

  Rates expected to remain at current levels on into future

McCue Inc.'s bonds currently sell for $1,200. They pay a $90 annual coupon, have a 25-year maturity, and a $1,000 par value, but they can be called in 5 years at $1,050. Assume that no costs other than the call premium would be incurred to call and r..

  Economic ordering quantity

TCL comapny has steady demand of the product it sells. Therefore it uses only the economic ordering quantity (EOQ). to determine inventory size. Determine its EOQ if Order cost is $25 Annual demand is 100,000 units Average inventory carrying cost is ..

  What is the correct initial incremental cash flow

You have just completed a $20,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $100,000, but if you sold it today, you would net $115,000 after taxes. Outfitting the space for a coffee s..

  Municipal bonds attractive to certain groups of investors

What features make Municipal Bonds attractive to certain groups of investors? Explain why direct financing transactions are more costly and/or inconvenient than intermediated transactions? How do Finance Companies differ from banks and thrift institu..

  Derive transport cost per pallet as a function of shipment

Derive the transport cost per pallet as a function of shipment size for the case where one or two trailers are used.

  What is the beta of portfolio

You own $17,316 of Olympic Steel stock that has a beta of 2.93. You also own $14,040 of Rent-a-Center (beta = 1.72) and $15,444 of Lincoln Educational (beta = 0.44). What is the beta of your portfolio?

  Analyze roles and responsibilities for compliance

Analyze Roles and Responsibilities for Compliance. Examine the types of decisions financial managers make. How are these decisions related to the primary objective of financial managers?

  Using activity based pricing marks up the cost of goods

A company using activity based pricing marks up the cost of goods by 0.27 plus charges customers for indirect costs based on the activities utilized by the customer. Indirect costs are charged as follows: $7.90 per order placed; $2.80 per separate it..

  Capital gains versus income

Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $4.00 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..

  What will the initial outlay for the project be

The Faraway Moving Company is involved in a major plant expansion that involves the expenditure of $177 million in the coming year. The firm plans on financing the expansion through the retention of $145 million in firm earnings and by borrowing the ..

  What is the real interest rate

What is the real interest rate, both accurate and approximate? - What is the correct project PV? - What would you get if you grew a perpetuity project of $20 by the real growth rate of 1%.

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