What will be the effect on the cash conversion cycle?

Date: 2015-10-07; view: 436.

By how many days will this reduce the cash conversion cycle?

Quarter 2012 2011 2012

Task 5
1 a. Suppose United States manufacturers are able to reduce inventory levels to a year-

average value of $250 billion and average accounts receivable to $300 billion.

b. Suppose that with the same level of inventories, accounts receivable, and accounts

payable, United States manufacturers can increase production and sales by 10 percent.

Task 6
Plan for the following year established:
1) increase the sales of products by 20% and bring it up to 20 thousand UAH;
2) reduce the days' sales in working capital from 60 to 55 days.
Determine the reduction of production costs by accelerating the turnover of working capital if growth standards for working capital, the company uses a short-term loan at a rate of 50% per annum.