Problemmarshall inc recently hired your consulting firm to, Ask an Expert

Accounting

Problem:

Marshall Inc. recently hired your consulting firm to improve the company's performance. It has been highly profitable bu has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle.

Required:

Question: Using the following information and a 365-day year, what is the firm's present cash conversion cycle?

Average inventoy= 75,000
Annual sales= 600,000
Annual cost of goods sold= 360,000
Average accounts receivable= 160,000
Average accounts payable= 25,000

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167531

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