Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

ABC Wholesalers sells products exclusively to XYZ Retailer. XYZ Retailer buys exclusively from ABC Wholesalers. ABC Wholesalers has a receivables period of 44 days, an inventory period of 8 days, and a payables period of 63 days. XYZ Retailer has an inventory period of 15 days, a receivables period of 22 days, and a payables period of 44 days. Which one of the following statement is correct given this information?

Choose one answer.

a. XYZ Retailer has an operating cycle of 81 days.

b. It takes XYZ Retailer less time to collect payment on a sale than it does for the firm to sell its inventory.

c. ABC Wholesalers is financing 100 percent of XYZ Retailers operating cycle.

d. ABC Wholesalers has a cash cycle of 11 days.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M945253

Have any Question? 


Related Questions in Basic Finance

During the time of the currency board argentinean banks

During the time of the currency board, Argentinean banks offered accounts in both dollars and pesos, but loans were made largely in pesos. Describe the impact on banks of the collapse of the currency board.

Finance assignmentdo the following problems1assume the hong

Finance Assignment Do the following problems 1. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Assume that interest rate parity exists. Today, an Australian do ...

Convex mechanical supplies produces a product with the

Convex Mechanical Supplies produces a product with the following costs as of July 1, 20X1:     Material $ 5 Labor 3 Overhead 2   $ 10  Beginning inventory at these costs on July 1 was 6,700 units. From July 1 to December ...

Case - atlas metals company capital budgetingquestions 1

Case - Atlas Metals Company Capital Budgeting QUESTIONS 1. Explain why Jim Brakeman's method of monitoring project managers' ROIs may have con-tributed to an increase in the company's ROI. Then explain why this procedure ...

Use the following results from a test for marijuana use

Use the following results from a test for marijuana use, which is provided by a certain drug testing company. Among 148 subjects with positive test results, there are 20 false positive results; among 153 negative results ...

Franklin county foundry has a total asset turnover rate of

Franklin County Foundry has a total asset turnover rate of 1.10 and their profit margin is 9.40 percent. There are $102,546 in accounts receivable and assets total $1,230,526. The How long on average does it take the fir ...

On abby ellens graduation from law school abbys uncle bull

On Abby Ellen's graduation from law school, Abby's uncle, Bull Brady, promised her a gift of $24,000 or $2,400 every quarter for the next 4 years after graduating from law school. If the money could be invested at 6% com ...

Suppose a company raises funds by issuing short-term bonds

Suppose a company raises funds by issuing short-term bonds (commercial paper). It uses the funds to make private loans. Such a firm is called a finance company. Is a finance company a type of bank?

Why are two gate valves required in normal practice to form

Why are two gate valves required in normal practice to form a washout valve?

Many people claim that playing the stock market is like

Many people claim that playing the stock market is like gambling. How is this true or not true? What should be one's approach to the stock market? Please no plagiarism. cite sources.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate