The credit analyst for Mazibuko Limited has established the following data relating to the working capital cycle of the firm: Credit payment period for raw materials 30 days Raw material delivery to completed goods 50 days Debtors collection period 80 days Completed goods to credit sales 20 days Required: Calculate the following: 3.1.1 The cash conversion cycle 3.1.2 The period during which financing will be required 3.1.3 Discuss four measures that can be implemented to reduce the period for which financing is required
The credit analyst for Mazibuko Limited has established the following data relating to the working capital cycle of the firm: Credit payment period for raw materials 30 days Raw material delivery to completed goods 50 days Debtors collection period 80 days Completed goods to credit sales 20 days Required: Calculate the following: 3.1.1 The cash conversion cycle 3.1.2 The period during which financing will be required 3.1.3 Discuss four measures that can be implemented to reduce the period for which financing is required
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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The credit analyst for Mazibuko Limited has established the following data relating to the working capital cycle of the firm:
Credit payment period for raw materials 30 days
Raw material delivery to completed goods 50 days
Debtors collection period 80 days
Completed goods to credit sales 20 days
Required:
Calculate the following:
3.1.1 The cash conversion cycle
3.1.2 The period during which financing will be required
3.1.3 Discuss four measures that can be implemented to reduce the period for which financing is required
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