Discussion: Firms Operating Cycle
A company holds inventory for 65 days, pays suppliers in 35 days, and collects receivables in 15 days. The company's annual outlay is $1,960,000 on operating cycle investments. The company pays 10% for its negotiated financing(360 days)
i. Calculate the cash conversion cycle
ii. Calculate the firms operating cycle.
iii. Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.