Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse payments to suppliers after 1 week. Determine the normal operating cycle of Fires Inc. if the 360-day year is used. 2. Airbmac Inc. has a total asset and total sales of P1,500,000 and P4,500,000, respectively. If the net income of the firm is only 4% of the sales revenue, what is the return on assets?

Fires Inc. has a cash conversion cycle of 3 weeks. It has a receivable turnover of 45 and disburse payments to suppliers after 1 week. Determine the normal operating cycle of Fires Inc. if the 360-day year is used. 2. Airbmac Inc. has a total asset and total sales of P1,500,000 and P4,500,000, respectively. If the net income of the firm is only 4% of the sales revenue, what is the return on assets?

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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