11. You have recently been hired to improve the performance of MJ Cor., which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Data gathered were as follows: Current inventory Annual sales :P120,000 : P600,000 :P157,808 :P25,000 :P365,000 : net 30 days : net 50 days. Accounts receivable Accounts payable Total annual purchases Purchases credit terms Receivables credit terms Using 365-day year, the estimated current cash conversion cycle (in days) is?

11. You have recently been hired to improve the performance of MJ Cor., which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Data gathered were as follows: Current inventory Annual sales :P120,000 : P600,000 :P157,808 :P25,000 :P365,000 : net 30 days : net 50 days. Accounts receivable Accounts payable Total annual purchases Purchases credit terms Receivables credit terms Using 365-day year, the estimated current cash conversion cycle (in days) is?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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