1. Why is working capital one of the most important activities of a financial manager? What is the net working capital?

2.tryst Enrgy inc. Has an averagenof inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days, The firms total annual outlays for operating cycle investment are $3.65million. Assumingna 365day year,how much financing is required to support its cash conversion cycle?

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Hubert KochLv2

29 Sep 2019

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Camp Manufacturing turns over its inventory five times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm has annual sales of $3.5 million and cost of goods sold of $2.4 million.

Calculate the firms operating cycle and cash conversion cycle.

What is the dollar value of inventory held by the firm?

If the firm could reduce the average age of its inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital?

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Camp manufacturing turns over its inventory 5 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm has annual sales of $3.5 million and cost of goods sold of $2.4 million. (Use 365-day year).

a. Calculate the firmâs operating cycle and cash conversion cycle.

b. What is the dollar value of inventory held by the firm?

c. If the firm could reduce the average age of inventory from 73 days to 63 days, by how much would it reduce its dollar investment in working capital?

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Garrett Industries turns over its inventory 7 times each year; it has an average collection period of 36 days, and an average payment period of 31 days. The firm's annual sales are $3.1 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and assume a 365- day year

A. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle.

B. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously
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champagnesalmon109

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