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ICE Princess25 [194]
3 years ago
11

Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the av

erage age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle
Business
1 answer:
zloy xaker [14]3 years ago
6 0

Answer:

Length of cash conversion cycle= 74 days

Explanation:

Cash conversion cycle is a measure of liquidity risk as a result of growth of a business. It considers how long a firm will be deprived of cash if it decides to increase amount it spends on inventory to expand customer sales.

CCC is how long a business takes to convert inventory to cash flow from sales.

Companies can shorten CCC by encouraging upfront payments and keeping repayment of credit less than 30 days.

CCC= Days of sales outstanding+ Days of inventory outstanding - Days of payables outstanding

CCC= 45+69-40

CCC= 74 days

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Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials
Novosadov [1.4K]

Answer:

$296,000

Explanation:

Calculation for How much is direct labor cost

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3 years ago
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3 years ago
The primary purpose of the statement of cash flows is to Select one: a. facilitate banking relationships. b. provide information
koban [17]

Answer:

c. provide information about the cash receipts and cash payments during a period.

Explanation:

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So Option C is the best choice

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3 years ago
Read 2 more answers
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