Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Jordan Air Inc. has average inventory of $1,000,000. Its estimated annual sales are $10 million and the firm estimates its receivables conversion period to be twice as long as its inventory conversion period. The firm pays its trade credit on time; its terms are net 30 days. The firm wants to decrease its cash conversion cycle by 10 days. It believes that it can reduce its average inventory to $863,000. Assume a 365-day year and that sales will not change. By how much must the firm also reduce its accounts receivable to meet its goal of a 10-day reduction in its cash conversion cycle?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941033

Have any Question? 


Related Questions in Basic Finance

G- value company is considering two investments both of

G- Value company is considering two investments, both of which costs $20,000. The firm's cost of capital is 15 percent (%). The cash flows are as follows: YEAR PROJECT A PROJECT B 1 12,000 10,000 2 8,000 6,000 3 6,000 16 ...

Project finance is difficult to define what are its

Project finance is difficult to define. What are its essential features? When deciding whether or not to back a project finance proposition, what essential features do potential lenders home in on?

Go to financeyahoocom and enter the name of your favorite

Go to finance.yahoo.com and enter the name of your favorite stock (Apple, Microsoft, Google, or whatever) in the Get Quotes box at the top left of the screen. As you enter the stock name, notice the stock ticker symbols ...

Tom has 5000 to invest and would like to buy a 9500 jet ski

Tom has $5000 to invest and would like to buy a $9500 jet ski on 4 years . If interest rate is compounded monthly, what interest he has to receive monthly to reach his goal?

1 list and briefly discuss the key features that

1. List and briefly discuss the key features that distinguish long-term debt issues from each other. 2. Define the following: term loan, balloon payment, collateral, and stock purchase warrants. 3. What is a syndicated l ...

1 why was the fujita-pearson tornado scale updated in 2006

1. Why was the Fujita-Pearson Tornado Scale updated in 2006, and what changes were made? 2. What are the three categories of wildland fires? 3. How are severe weather storms measured? 4. What single disaster type caused ...

Investigators studying the mass transfer from single

Investigators studying the mass transfer from single spheres recommended the generalized equation Sh = 2.0 + CRe m Sc 1/3 As discussed in section, the value of 2 can be derived theoretically by considering the molecular ...

Normas cat food of shell knob ships cat food throughout the

Norma's Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two ...

1 present value of annuity what formula is used to

1. Present Value of Annuity. What formula is used to determine the present value of an annuity? What does the present value of an annuity indicate? 2. Future Value of Annuity. How would you modify the FVA equation to det ...

1 discuss the pros and cons of using naturalistic versus

1. Discuss the pros and cons of using naturalistic versus contrived observation. 2. What special opportunities and problems does participant observation create for researchers? 3. What does it mean if a behavior is react ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen