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:
Option (3) is correct.
Explanation:
Frictional unemployment refers to a situation of unemployment in which a person is looking for a job pr searching a job that is related to the educational qualification. The time taken by the people to find the suitable job is also known as the searching unemployment. In this type of unemployment, a person is looking for a job or in a process of changing a job but won't be able to find the perfect match yet.
Formulating and implementing goals and initiatives from the company's top management is what the strategic management mainly involves at. It is mostly based on the consideration of resources in which the organization competes. I hope my answer has come to your help. God bless and have a nice day ahead!<span>
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Answer: 35500units
Explanation: to earn a predetermined net income before tax,the sales units must be equivalent to the sum of fixed cost and pretax net income then divide by the contribution per unit. Contrition is selling price per unit minus variable cost per unit