As an operations management consultant, you have been asked to evaluate a furnituremanufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.5million, cost of goods sold of $23.5 million, 50 operating weeks a year, total average on handinventory of $2,400,000, accounts receivable equal to $2,455,000, and accounts payable of$3,775,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediatecalculations. Round your answer to one decimal place.week(s)What recommendations can you make to improve performance?-Select-v inventory weeks of supply and -Select-v accounts receivable weeks of supply orv accounts payable weeks of supply are ways to improve overall firm performance.-Select-

Cash Conversion Cycle measures the approximate number of days that company takes to convert its…

calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- v inventory weeks of supply and -Select- v accounts receivable weeks of supply or -Select- accounts payable weeks of supply are ways to improve overall firm performance.

calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? -Select- v inventory weeks of supply and -Select- v accounts receivable weeks of supply or -Select- accounts payable weeks of supply are ways to improve overall firm performance.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Question

As an operations management consultant, you have been asked to evaluate a furniture
manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $24.5
million, cost of goods sold of $23.5 million, 50 operating weeks a year, total average on hand
inventory of $2,400,000, accounts receivable equal to $2,455,000, and accounts payable of
$3,775,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate
calculations. Round your answer to one decimal place.
week(s)
What recommendations can you make to improve performance?
-Select-
v inventory weeks of supply and -Select-
v accounts receivable weeks of supply or
v accounts payable weeks of supply are ways to improve overall firm performance.
-Select-

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