3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle,

3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle,

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Question

3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30
days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs
3.3 millions. Assume 360 days a year.
a. Calculate firm's operating and cash conversion cycle.

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