The length of the cash conversion cycle for a firm with $3 million in inventory is 70.41 days.
<h3>How to calculate the days?</h3>
Days of inventory outstanding= 365/ Inventory turnover
Formula for calculating inventory turnover:
Inventory Turnover = Cost of Goods Sold/Average Inventory
= $18 million / $3 million
= 6
Days of inventory outstanding= 365/ 6 = 60.83 days
Days of payable outstanding= 365/ Payables turnover
Payables turnover = Cost of Goods Sold/ Average Payables
= $18 million / $1.5
= 12
Days of payable outstanding= 365/ 12
= 30.42 days
Cash conversion cycle= Days of inventory outstanding + Days of sales outstanding – Days of payables outstanding
= 60.83 days + 40 days - 30.42 days
= 70.41 days.
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Answer:
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Explanation:
Explanation:
30%
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<span>According to my knowledge if you earn 100000 dollars yearly, Than you in 28% tax bracket in 2017-18 financial year. You will pay $20,982 as percentage of income 20.98%.since that's the highest rate applied to any of your income; but as a percentage of the whole $100,000, your tax is about 17%.</span>
Answer:
$21,600
Explanation:
The computation of the total amount of depreciation to be expense is shown below:
First, we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 5
= 20%
Now the rate is double So, 40%
In year 1, the original cost is $90,000, so the depreciation is $36,000 after applying the 50% depreciation rate
And, in year 2, the $(90,000 - $36,000) × 40% = $21,600
Residual value is ignored in this method.