Please revise question 46 to get an answer in this options An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage....

Please revise question 46 to get an answer in this options

An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm’s cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm’s inventory conversion cycle.

		18 days
		70 days
		75 days
		80 days

Based on information from Question 46~48, Calculate the firm’s cash conversion cycle (CCC).

		122 days
		129 days
		147 days
		128 days

Step 2<br>46) Calculation of Firms inventory conversion cycle:<br>Inventory conversion cycle = (Current Inventory / Annual Sales)* Days in a year<br>= ($160,000 / $1,095,000)* 365<br>wrong<br>= 53.3333 days<br>Step 3<br>47) Calculation of Firms Receivable Collection Period:<br>Firms receivable Collection Period = (Accounts Receivable / Annual Sales) * Days in a year<br>= ($180,000 / S1,095,000)* 365<br>= 60 days<br>Step 4<br>48) Calculation of Pay off deferral Period:<br>Pay-off deferral period = (Accounts Payable / Annual Purchases)

Extracted text: Step 2 46) Calculation of Firms inventory conversion cycle: Inventory conversion cycle = (Current Inventory / Annual Sales)* Days in a year = ($160,000 / $1,095,000)* 365 wrong = 53.3333 days Step 3 47) Calculation of Firms Receivable Collection Period: Firms receivable Collection Period = (Accounts Receivable / Annual Sales) * Days in a year = ($180,000 / S1,095,000)* 365 = 60 days Step 4 48) Calculation of Pay off deferral Period: Pay-off deferral period = (Accounts Payable / Annual Purchases)" Days in a year = ($36,000 / $730,000)* 365 days = 18 days

Jun 05, 2022

SOLUTION.PDF

Please revise question 46 to get an answer in this options An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage....

Get Answer To This Question

Related Questions & Answers

Submit New Assignment