Is there a solution for chapter 15 problem 1 in principles of managerial finance 14th edition?
Company a has on average inventories of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they areise. Annaul sales are about 30 million. Cost of goods sold are 20 million and purchases are 15 million
a. Calculate the firms operating cycle
b. Calculate the firms conversion cycle
c. Calculate the amount of resources needed to support the firms cash conversion cycle.
d. Discuss how management might be able to reduce the cash conversion cycle