Problema firm has a cash conversion cycle of 60 days annual, Ask an Expert

Accounting

Problem:

A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of negotiated financing is 12 percent.

Required:

Question: If the firm reduces its average age of inventory by 10 days, what is the annual savings?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169481

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