The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11
The National Co. has an inventory conversion period of 60 days, a receivable conversion period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is 12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's carrying cost on accounts receivable, using 360 days year? * Format: 11,111.11
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Question
39
![The National Co. has an inventory conversion period of 60 days, a receivable conversion
period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost
ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is
12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's
carrying cost on accounts receivable, using 360 days year? *
Format: 11,111.11](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F514f4cff-708f-45c9-94a5-5a1e28e43ac2%2F60e4696e-eae8-43d8-b1c9-026f39e7daef%2F9s38c1s_processed.png&w=3840&q=75)
Transcribed Image Text:The National Co. has an inventory conversion period of 60 days, a receivable conversion
period of 35 days, and a payable payment period of 45 days. The National Co.'s variable cost
ratio is 65% and annual fixed costs of P600,000. The current cost of capital for National Co. is
12%.lf National Co.'s annual sales are P3,375,000 and all sales are on credit, what is the firm's
carrying cost on accounts receivable, using 360 days year? *
Format: 11,111.11
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