An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm’s cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm’s inventory conversion cycle. 18 days 70 days 75 days 80 days Question 47 Based on information from Question 46, Calculate the firm’s receivables collection period. 60 days 70 days 80 days 90 days Question 48 Based on information from Question 46, Calculate the firm’s payables deferral period. 18 days 36 days 75 days 90 days
Question 46
An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants to determine the firm’s cash conversion cycle. Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm’s inventory conversion cycle.
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18 days |
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70 days |
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75 days |
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80 days |
Question 47
Based on information from Question 46, Calculate the firm’s receivables collection period.
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60 days |
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70 days |
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80 days |
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90 days |
Question 48
Based on information from Question 46, Calculate the firm’s payables deferral period.
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18 days |
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36 days |
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75 days |
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90 days |
Question 49
Based on information from Question 46~48, Calculate the firm’s cash conversion cycle (CCC).
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122 days |
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129 days |
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147 days |
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128 days |
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