Williams & Sons last year reported sales of $127 million, cost of goods sold (COGS) of $105 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 7 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the nearest dollar.

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: To complete this  we have to use the following formulas -   Cash Conversion cycle = Debtor's…

Q: Data on Nathan Enterprises for the most recent year are shown below, along with the days sales…

A: Financial Ratios:   Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: A firm with sales of $500,000 has average inventory of $200,000. the industry average for inventory…

A: Inventory turnover measures how many times, on average company sells its entire inventory during the…

Q: Kiley Corporation had the following data for the most recent year (in millions). The new CFO…

A: Cash Conversion Cycle (CCC): It Includes the days allowed to debtors, days take by inventory…

Q: xyz is trying to determine the effect of its inventory turnover ratio and days sales outstanding…

A: 1) Computation:

Q: SJU Resources last year reported cost of goods sold of $35 million and an inventory turnover ratio…

A: Inventory turnover ratio means the cost of goods sold divided with average stock.

Q: Over the last three years, management of Beltway, Inc. has seen Inventory Turnover go from 6.3 to…

A: CCC or Cash Conversion cycle is defined as the metric used to calculate the time taken by a company…

Q: Williams & Sons last year reported sales of $23 million, cost of goods sold (COGS) of $16 million,…

A: Given, Sales = $23 million COGS = $16 million Inventory turnover = 4 times Inventory Turnover (New…

Q: The Tamaraw Corporation is trying to determine the effect of its inventory turnover ratio and DSO on…

A: Answer -  Part 1 - Computation of Tamaraw’s cash conversion cycle -    Cash Conversion Cycle = Days…

Q: A firm is considering several policy changes to increase sales. It will increase the variety of…

A: Given: Increase in inventory=$11900Increase in average receivables =$68800Increase in sales=$819000…

Q: Kraft Inc, a retailer of dairy products, reported cost of goods sold for the year of $75 million.…

A: Calculating cash payment to suppliers: Cost of purchases = Cost of goods sold - Decrease in…

Q: Heritage Farms has sales of $1.62 million with costs of goods sold equal to 78 percent of sales. The…

A: CCC is number of days in which company should have recover cash form inventories and receivables and…

Q: 365-day year. He believes he can reduce the average inventory to $627,465 with no effect on sales.…

A: inventory conversion period =Average inventory/ Cost of goods sold x 365 Cost of goods sold…

Q: .You have recently been hired to improve the performance of MJ Cor., which has been experiencing a…

A: The company has given information to improve the performance of the company. Required  Calculate the…

Q: Granada Inc. considers the following: i) a developed inventory management system could lower the…

A: The cash conversion cycle refers to the total of days inventory outstanding(DIO) and days sales…

Q: what it the firm’s cash conversion cycle?

A: Cash Conversion Cycle: It is a metric used in finance that indicates the time it takes for a firm…

Q: Lance Motors has current assets of $1.2 million. The company’s current ratio is 1.2, its quick ratio…

A: Compute the current Liabilities using the current ratio formula Curent ratio=Current AssetsCurrent…

Q: Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of $60 million,…

A: The inventory turnover ratio has increased which shows that the company is selling the goods…

Q: The Barnsdale Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin =…

A: Additional Funds needed (AFN): A company may need to raise funds needed for expansion when its…

Q: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 5% this…

A: Sales =$150 Million Sale increase percentage =5% Inventories = $11 + 0.07(Sales)

Q: Wall Mart Pictures and Decor Company has a net profit margin of 10% and its inventory turnover is 9.…

A: Given, Inventory Turnover = 9 Average Inventory = $96,700

Q: Kiley Corporation had the following data for the most recent year (in millions). The new CFO…

A: Calculation of cash conversion cycle: Answer: Cash conversion cycle is 34.01 days. So, CCC is…

Q: What will be the net change in the cash conversion cycle, assuming a 365-day year?

A: Cash conversion cycle (CCC) refers to the time period (in days) taken by a company to convert its…

Q: The Barnsdale Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin =…

A: Here A0/S0=1.6         L0/S0=0.4 Profit Margin=0.10 Dividend Payout=0.45 Sales=$100 Mn Hence Asset=…

Q: As an operations management consultant, you have been asked to evaluate a furniture manufacturer's…

A: The question is related to Cash Operating Cycle:- The cash operating cycle (also known as the…

Q: Edison Inc. has annual sales of $36,500,000. The firm's cost of goods sold is 75% of sales. On…

A: Cash Conversion cycle means the time period within which the inventory sold or services business…

Q: The Tamaraw Corporation is trying to determine the effect of its inventory turnover ratio and DSO on…

A: Answer -  Part 1 - Cash Conversion Cycle - Inventory conversion period + average collection period…

Q: A company has $20 million in cost of goods sold and an inventoryturnover ratio of 2.0. If it can…

A: The question is based on the concept calculation of inventory turnover ratio. Formula as,

Q: Bulldogs Inc. has a normal operating cycle of 32 days and cash conversion cycle of 25 days. Which of…

A: Formula -  Cash operating cycle =  The no. Of inventory days  + Receivable days - payable Days

Q: Williams & Sons last year reported sales of $21 million, cost of goods sold (COGS) of $16 million,…

A: Inventory turnover ratio is an activity ratio which helps stakeholders like investors and…

Q: Samaritan Supplies, Inc. has P5 million in inventory and P2 million in accounts receivable. Its…

A: The inventory conversion period is the time period a firm takes to sell out its inventory. The firms…

Q: Christie Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Answer- Part 1 – Calculation of Cash Conversion Cycle -   Inventory Conversion Period  = 365 /…

Q: Chastain Corporation is trying to determine the effect of itsinventory turnover ratio and days sales…

A: Cash Conversion Cycle shows how much time (in days) will a company requires to convert investments…

Q: CCC Corp. has annual turnovers of inventory, receivables, and payables of 12, 18, 8 respectively.…

A: Difference in cash conversion cycle = cash conversion cycle of CCC Corporation - Cash conversion…

Q: Williams & Sons last year reported sales of $50 million, cost of goods sold (COGS) of $40 million,…

A:

Q: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily…

A: Inventory conversion period = Inventory/Average daily cost of goods sold   Note :- In case cost of…

Q: Williams & Sons last year reported sales of $39 million, cost of goods sold (COGS) of $30 million,…

A: Inventory turnover ratio can be calculated by cost of goods sold divided by average inventory.

Q: & Sons last year reported sales of $12 million, cost of goods sold (COGS) of Inventory Management…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Parker Products, Inc. is a manufacturer whose absorption costing income statement reported sales of…

A:

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Step 1: Compute the CCC (cash conversion cycle) as follows:

Q: a) Kareem & Sons last year reported sales of 12 million and an inventory turnover ratio of 4. The…

A: Inventory = Sales/ Inventory turnover ratio  Accounts receivable = DSO * Average Day Sales

Q: b) Medwing Corporation has a DSO of 19 days. The company averages 5,500 in credit sales each day.…

A: Answer b: Average amount of receivables=Sales×DSO360=$5,500×19360=$290.28

Q: Inventory ManagementWilliams & Sons last year reported sales of $12 million, cost of goods…

A: One of an organization's most important commodities is its inventory. A firm's inputs and final…

Q: an increase or decrease in NWC

A: Working capital: The term working capital also known as net working capital is nothing but the…

Q: firm with sales of $500,000 has average inventory of $200,000. The industry average for inventory…

A: The inventory turnover ratio measures how many times the inventory is consumed in a given period of…

Q: Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices,…

A: LIFO Method is an inventory valuation method where inventory purchased last sold first. Whereas as…

Q: Kiley Corporation had the following data for the most recent year (in millions). The new CFO…

A: Given, Average inventory = $4000 Improve in the credit department could reduce receivables =$2000…

Q: A firm with sales of $500,000 has average inventory of $200,000. T he industry average for inventory…

A: Computation of inventory turnover:

Q: Williams & Sons last year reported sales of $38 million, cost of goods sold (COGS) of $30 million,…

A: Inventory Turnover ratio is the rate at which a company sells and then replaces its inventory in a…

Q: Charlie’s Cycles Inc. has $110 million in sales. The companyexpects that its sales will increase 5%…

A: The inventory turnover ratio is the ratio which shows the average number of times the average…