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
Consider the following information: Suppliers’ payment period 40 days Receivables’ collection period 40 days Finished goods holding period 15 days Work – in progress holding period 10 days Raw materials inventory holding period 20 days b)What is the cash cycle? Select one: A. 35 days B. 45 days C. 30 days D. None of the above
A firm has an average age of inventory of 65 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is a. 110 days b. 45 days c. 75 days d. 80 days
A firm has an average age of inventory of 100 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's cash conversion cycle is?
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Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 46 days b. 31 days c. 42 days d. 38 days e. 34 days
The financial manager of Sarap Corporation wants to determine the amount of cash atlays to be spent for the next period. He asked the help of the accountant and the lattes provided a cash budget for the next year According to the computation, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm's opportunity cost ratio is 12% a) the optimum cash tufence is? b) The average cash balance is? c) the number of conversion made during the year? d) The total cash cost is? Please help me with these. Thank youuuu!
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The financial manager of Sarap Corporation wants to determine the amount of cash outlays to be spent for the next period. He asked the help of the accountant and the latter provided a cash budget for the next year. According to the computations, the company would be incurring cash expenses of P6,612,500 per month. The financial manager has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm's opportunity cost ratio is 12%. a. The optimum cash balance is?
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