Zahoor Industries turns over its inventory 6 times each year; it has an average collection period of 45 days and an average payment period of 30 days. The firm’s annual operating-cycle investment is $3 million. Assume a 360-day year. Calculate the firm’s cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle. Find the firm’s cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. (1) Shortens the average age of inventory by 5 days. (2) Speeds the collection of accounts receivable by an average of 10 days. (3) Extends the average payment period by 10 days. If the firm pays 13% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part b? If the annual cost of achieving the profit in part c is $35,000, what action would you recommend to the firm? Why?

Q: a. Management expects to sell equipment that cost $14,000 at a gain of $7,000. Accumulated…

A: Cash Receipt :— It is the amount of cash received from transaction involving cash inflow.   Cash…

Q: Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash…

A: Assume 365 Days in Year Annual sales = $45,000 Annual cost of goods sold =   $30,000 Inventory =…

Q: The manager of a production system expects to spend $100,000 the first year with amounts decreasing…

A: Expenditure in first year = 100,000 Decrease in expenditure each year = 10,000   Income in first…

Q: Parramore Corp has $12 million of sales, $1 million of inventories, $4 million of receivables, and…

A: The cash conversion cycle is a measure of estimating the time period for a corporation in which the…

Q: Calculate the cash conversion cycle. Round your answer to the nearest whole number.   days…

A: Information Provided: COGS = $144,000 (60% of sales) Inventory Turnover = 30x Accounts Receivable =…

Q: Garrett Industries turns over its inventory six times each year; it has an average collection period…

A: Cash conversion cycle =Days of inventory outstanding (DIO) + Days sales outstanding (DSO) - Days…

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

A: Cash to cash conversion cycle It measures the time span required for a company to convert its cash,…

Q: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35…

A: The cash conversion cycle is a tool that is used by the companies to find the number of days…

Q: Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs…

A: Economic order quantity is the optimal quantity of or frequency of order which minimizes the cost of…

Q: Aztec Products wishes to evaluate its cash conversion cycle (CCC). Research by one of the firm’s…

A: Cash conversion cycle represents a company's ability to convert its final product , from paying…

Q: A company with annual sales of $22,000,000 is considering changing its payment terms from net 40 to…

A: Answer:

Q: The Kingsman Company historically has had 25 percent cash sales with the remainder paid within one…

A:

Q: Changing cash conversion cycle Camp Manufacturing turns over its inventory 5 times each year, has an…

A: Given the following information: Inventory turnover: 5 times Average payment period: 30 days…

Q: High Inc. has annual sales of P40,000,000 and keeps average inventory of P10,000,000. On average,…

A: The cash conversion cycle is a period of time that expresses how many days it takes a company to…

Q: Management expects to sell equipment that costs $20,000 at a gain of $5,000. Accumulated…

A: a.  Cost of equipment 20000 Accumulated depreciation -5000 Carrying cost of equipment =15000…

Q: Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash…

A: Formula: Inventory conversion period = ( Inventory / Cost of goods sold ) x 365 days. Division of…

Q: ntonio is an analyst at Barrilla Group. The firm turns over its inventory 5 times each year. It has…

A: Cash conversion cycle tells that how much period is required to collect money from customer and…

Q: Viron Corporation has a cash conversion cycle of 100 days and a bank credit line of $5 million at 5%…

A: Cash conversion cycle refers to the number of days which has incurred in converting the investment…

Q: The Danser Corporation expects to generate sales equal to $30,000 in January, $33,000 in February,…

A: Total cash collection for March is 20% of March sales, 50% of February Sales and 30% of January…

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: Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how…

A: operating cycle is sum of inventory period and average collection period.This is time required to…

Q: Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Biondi Manufacturing Company  has an average accounts receivable balance of $1,250,000, an average…

A: Cash conversion cycle shows how a firm efficiently convert its investment in inventory into sales…

Q: Parramore Corp has $17 million of sales, $3 million of inventories, $2.25 million of receivables,…

A: Step 1: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: The white oak company's annual sales are 219 million van average of 9 days elapses between when a…

A: GIVEN   The white oak company's annual sales are 219 million van average of 9 days elapses between…

Q: JA Inc. has average inventory of $1,000,000. Its estimated annual sales are $10 million and the firm…

A: Calculation of Inventory Conversion Period: =365 days * Inventory/Sales =365 * $1,000,000 /…

Q: The Sandbox Company is planning to increase its level of collection expenditures form the current…

A: The receivable turnover ratio is computed by dividing the net credit sales by the average accounts…

Q: Calculate the firm’s cash conversion cycle, its daily cash operating expenditure, and the amount of…

A: Inventory Turnover ratio shows how many times a company has sold and replaced inventory during a…

Q: Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35…

A: Cash conversion cycle is defined as the metric, which helps in expressing the time when they used to…

Q: make in excel and take screenshots. A Pumpkin Pie Manufacturing Company pays on the tenth day after…

A: Company can decrease the cost if working capital has been reduced and that is possible by decrease…

Q: cash conversion cycle

A: Cash conversion cycle = Age of inventory + Days sales outstanding - Accounts payable deferral period

Q: Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000,…

A: Introduction: The cash cycle is the amount of time it takes a business to convert raw resources into…

Q: Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If…

A: The cash conversion cycle is the number of days required for the cash invested in inventory to be…

Q: Marshall Inc. is looking for ways to shorten its cash conversion cycle. It has annual sales of…

A: Determine the effect of policies on cash conversion cycle: Step 1: Calculate the new sales, cost of…

Q: Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35…

A: To Find: Firm's Operating cycle Cash conversion cycle Daily Cash operating expenditure

Q: XYZ Stadium Inc. has annual sales of P80,000,000 and keeps average inventory of P20,000,000. On…

A: Since you have asked multiple sub-parts under one question. Kindly repost the question to get the…

Q: Parramore Corp has $10 million of sales, $2 million of inventories, $4 million of receivables, and…

A: Ratio analysis: This is the quantitative analysis of financial statements of a business enterprise.…

Q: Your consulting firm was recently hired to improve the performance of Realyou Inc, which is highly…

A: Average days in inventory = 365 / Inventory turnover ratio Average days in receivables = 365 /…

Q: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35…

A: given, inventory conversion period=50 daysaverage collection period = 35 dayspayable deferral period…

Q: Merton Analytics is considering changes in its working capital policies to improve its cash flow…

A: Cash Conversion Cycle(CCC) shows time period that an entity requires to convert its operations into…

Q: Tomas Fishing Products is analyzing the performance of its cash management. On the average, the firm…

A: The question is based on the concept of the operating cycle, which is defined as time required for a…

Q: American Products is concerned about managing cash efficiently. On average, inventories have an age…

A: According to the rule, we will only answer the first three subparts, for the remaining subparts,…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.