![22savage2017](/avatars/34023.jpg)
22savage2017
18.01.2021 •
Business
A company purchases inventory on terms of net 30 days and resells to its customers on terms of net 15 days. The inventory conversion period averages 60 days. What is the company's cash conversion cycle
Solved
Show answers
More tips
- G Goods and services How to Choose a Humidifier? Helpful Tips and Recommendations...
- W Work and Career What is the Most In-Demand Profession in the Modern World?...
- A Auto and Moto How Can Parking Sensors Help Drivers?...
- H Health and Medicine What is the Normal Blood Sugar Level in a Healthy Person?...
- F Food and Cooking Red Caviar: How to Choose the Best?...
- C Computers and Internet Clearing Cache: How to Speed Up Your Browser...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- B Business Your friend says it’s a bad idea to have a checking account because of all the fees. Make a persuasive argument about the benefits of having a checking account....
- B Business Imagine someone asks you to cater a wedding. The bride’s family is vegetarian while the groom’s family is omnivorous, or people who eat all types of food. They plan to have...
- B Business Assume the following information for Windsor Corp. Accounts receivable (beginning balance) $140,000 Allowance for doubtful accounts (beginning balance) 11,490 Net credit...
- B Business Welp starting from today I m not connecting to People are starting to be rude to me and that does make me sad and it breaks my heart so God Bless you ll...
- E English Epics such as The Mahabharata and the Iliad were passed down as part of an oral tradition. If a story is part of an oral tradition, which of the following must be true? A....
- M Mathematics A rectangle is 15m longer than its width. it s perimeter is 72m. find it s length...
- P Physics Can someone explain why this diagram proves that this prevents sunburn?...
- M Mathematics Allison measured her rectangular deck and found that it has dimensions of 512 yards by 8 yards. Both the length and the width may have a measurement error of up to 15%. What...
- H History How was the Treaty of Kanagawa similar to the treaties that China signed with various European powers?...
- M Mathematics Questions After completing his experiment Javier looked up that day s temperature and relative humidity on an online weather services How did the humics reading compare with...
Ответ:
The company's cash conversion cycle is 75 days
Explanation:
The conversion cycle is the number of days that a business takes to convert its investment in inventory into cash flowing from the purchase and sales of the business.
Conversion cycle = Payable days + Inventory in Stock days + Receivable days
where
Payable days = Purchases term = 30 days
Inventory in stock = Number of days until inventory remains unsold = 60 - 30 days = 30 days ( As payable days are already included in inventory conversion days )
Receivable days = Sales term = 15 days
Placing values in the formula
Conversion cycle = 30 days + 30 days + 15 days
Conversion Cycle = 75 days
Ответ:
$17.99 - $3.60 = $14.39 (per shirt)
40 / 14.39 = 2.779 (round to 3)
You'd have to buy 3 shirts in order to use your coupon.
($14.39 * 3 = $43.17, in order to get $10 off you'd need to spend at least $40)