answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dem82
1 month ago
6

A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis

hed good sold on account 100 days after the raw materials were purchased. The customer paid for the finished good 60 days later. The firm's cash conversion cycle is ________ days.
Business
1 answer:
Katen [3.5K]1 month ago
7 0

Answer:

130 days

Explanation:

The Cash Conversion Cycle measures the average duration required for a company to transform its resources into cash.

It can be calculated using the formula

Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

where

Days of Inventory Outstanding represents the time taken to convert inventory into sales

Days of Sales Outstanding refers to the duration it takes for customers to settle their payments, and

Days of Payables Outstanding is the period the firm took to pay for the purchases made

Substituting in the values we have

= 100 + 60 - 30

= 130 days

The company's cash conversion cycle amounts to 130 days.

You might be interested in
The ​ S&P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
Scilla [3833]

Answer: The average annual arithmetic return is 3.75%.

Explanation:

Year 1 = 10%

Year 2 = 15%

Year 3 = 15%

Year 4 = -25%

Total return = 15%

The arithmetic average annual return is calculated as (Year 1 return + Year 2 return + Year 3 return + Year 4 return) / 4 = 15% / 4 = 3.75%.

5 0
2 months ago
According to physicist and philosopher Albert Einstein, "Nothing will benefit human health and increase chances of survival of l
marusya05 [3725]

Answer:

I concur with the statement made. Recent studies indicate that beef production is significantly taxing on freshwater resources (approximately 200 liters of water are required per kg of beef).

Explanation: Observing the current global climate change and the numerous species, aside from humans, facing extinction due to these environmental shifts strengthens my agreement with this perspective. Nevertheless, I find it challenging to alter my eating habits and find it hard to reduce meat consumption. I believe a key element for behavioral change is to establish varying stages, and many individuals like myself could benefit from a gradual approach to align consumption habits with a more conscious lifestyle.

6 0
2 months ago
Universal Electronics, Inc. (UEI), which started operations one year ago, has two divisions: Consumer and Commercial. Both divis
Scilla [3833]

Answer:

Both divisions are showing equal performance with an ROI of 14%.

Explanation:

The financial figures given have been organized as follows:

                                      Consumer ($)            Commercial ($)

Sales revenue                         22,000                    37,000

Divisional income                       3,850                     3,885

Divisional investment                27,500                   27,750

Current liabilities                      1,000                     800

R&D                                          1,000                   1,000

The resulting calculations are as follows:

Divisional ROI = Divisional income / Divisional investment

Consumer division ROI = $3,850 / $27,500 = 0.1400, or 14%

Commercial division ROI = $3,885 / $27,750 = 0.1400, or 14%

This illustrates that investment returns are equal at 14% for both divisions.

8 0
2 months ago
Which of the following statements best describes how productivity relates to activity?
harina [3808]
From the options provided, I think the final one is the most accurate. The statement that most effectively illustrates the connection between productivity and activity is that productivity consists of activities that facilitate progress. Hope this clears up your query. Have a wonderful day!
6 0
2 months ago
Read 2 more answers
Which statement best summarizes the role of households in the flow of
soldi70 [3635]

The answer is A

#FreeMelvin

5 0
1 month ago
Read 2 more answers
Other questions:
  • Kirk wants to get an FHA loan. Which of the following is Kirk himself not likely to do during the application process?
    7·1 answer
  • The Toyota Effect describes Toyota’s desire to use its resources and knowledge to benefit society, and people, and the planet. T
    6·1 answer
  • 3. Naging mabuti ang kinahinatnan ng migrasyon ng mga Austronesian<br>sapagkat<br>​
    12·1 answer
  • Explain why the demand for a particular brand of apple juice is elastic.
    13·1 answer
  • Wyatt Oil presently pays no dividend. You anticipate Wyatt Oil will pay an annual dividend of $0.56 per share two years from tod
    10·1 answer
  • Suppose you own 75 shares of Google, which pay a dividend of $0.13 per share per year. How much will you receive in dividends ov
    15·2 answers
  • Why luxury hotels might have higher variability than the budget hotels. Think about the Hotel Industry and why you might see gre
    5·1 answer
  • Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual reve
    8·1 answer
  • Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of
    6·1 answer
  • Extreme Adventurer, an outdoor nature magazine, marketed to potential customers who recently purchased camping equipment and fou
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!