Question 5 (8 points) Find the Cash-to-Cash Cycle Time if the annual sales is $14 million, cost of goods sold is S10 million, average inventory is SI.5 million, accounts receivable is S1.2 million...

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Question 5 (8 points) Find the Cash-to-Cash Cycle Time if the annual sales is $14 million, cost of goods sold is S10 million,

business Operations-Management

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Answer 1

Answer #1

Days Inventory Outstanding (DIO) is calculated by := Inventory / Cost of Sales * 365

=(1.5/14)*365=39 days

Cash Conversion cycle = Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) – Days Payable Outstanding (DPO)

Days sales outstanding = 1.2/14*365=31

Days payable outstanding =1.3/14 *365 =34

Cash conversion cycle = 39+31-34= 36 days.

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Answer 2

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Question 5 (8 points) Find the Cash-to-Cash Cycle Time if the annual sales is $14 million, cost of goods sold is S10 million, average inventory is SI.5 million, accounts receivable is S1.2 million...

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Add Answer to: Question 5 (8 points) Find the Cash-to-Cash Cycle Time if the annual sales is $14 million, cost of goods sold is S10 million, average inventory is SI.5 million, accounts receivable is S1.2 million...

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Question 5 (8 points) Find the Cash-to-Cash Cycle Time if the annual sales is $14 million, cost of goods sold is S10 million, average inventory is SI.5 million, accounts receivable is S1.2 million...