Assume that a company has $20 million in revenue and its cost
Question # 00063214
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Updated on: 04/25/2015 11:48 AM Due on: 04/25/2015
Assume that a company has $20 million in revenue and its cost of goods sold is 70% of its sales. Additionally, the firm has $3 million of inventories, $2 million in payables, and $2 million in receivables. What’s the firm’s cash conversion cycle (CCC)?
CCC= (Days Inv Out+Days sales Out-Days payable out) / (inv/sales)(acct receivable/net credit sales)(accout payable/cost of sales)
Can you provide some guidance?
CCC= (Days Inv Out+Days sales Out-Days payable out) / (inv/sales)(acct receivable/net credit sales)(accout payable/cost of sales)
Can you provide some guidance?
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Solution: Assume that a company has $20 million in revenue and its cost