As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under thefollowing assumptions: sales of $23.6 million, cost of goods sold of $19.5 million, 50 operating weeks a year, total average on-hand inventory of$2,300,000, accounts receivable equal to $2,440,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Donot round intermediate calculations. Round your answer to one decimal place.week(s)What recommendations can you make to improve performance?-Select- ✓inventory weeks of supply and -Select- ✓accounts receivable weeks of supply or -Select-are ways to improve overall firm performance.accounts payable weeks of supply

Cash to Cash conversion cycle is computed by following formula:-Cash to Cash conversion cycle (in…

Answered: As an operations management consultant,…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.6 million, cost of goods sold of $22.7 million, 50 operating weeks a year, total average on hand inventory of $2,050,000, accounts receivable equal to $2,470,000, and accounts payable of $3,735,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- inventory weeks of supply and -Select- accounts receivable weeks of supply or -Select- ✓accounts payable weeks of supply are ways to improve overall firm performance.
As an operations management consultant for the Graco Manufacturing Company, you have been asked to evaluate a furniture manufacturer’s cash-to-cash conversion cycle un- der the following assumptions for its performance in 2021: sales of $5 million, cost of goods sold of $20.8 million, 50 operating weeks a year, total average on-hand inventory of $2,150,000, accounts receivable equal to $2,455,000, and accounts payable of $3,695,000. However, the average on-hand inventory does not include $4,200,000 in inventory al- allowance for excess, cancelled orders, and obsolete inventories. Based on this description and data, please answer the following questions: What is the “total” cash-to-cash conversion cycle for Graco Manufacturing Company for the 2021 year ignoring the $4,200,000 in inventory allowances for excess, cancelled orders, and obsolete inventories? Please show all the calculations necessary to justify your answer. What would be impact of including the $4,200,00 in inventory…
As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.5 million, cost of goods sold of $23.5 million, 50 operating weeks a year, total average on hand inventory of $2,400,000, accounts receivable equal to $2,455,000, and accounts payable of $3,775,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- v inventory weeks of supply and -Select- v accounts receivable weeks of supply or v accounts payable weeks of supply are ways to improve overall firm performance. -Select-
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