本帖最后由 拿破仑 于 2014-2-5 22:51 编辑
Kanwai fans produces 25,000 fans per day at a cost of $7.50 each (material and labor). It takes the firm 12 days to convert raw materials into a fan and sell ir. Kanwai allows it's customers 30 days in which to pay for the fans they purchase, and the firm generally pays it's suppliers in 20 days. a. what is the length of kanwais cash conversion cycle? b. If kanwai always produces and sells 25,000 fans per day, what amount of working capital must it finance? c. By what amount can Kanwai's reduce it's working capital financing needs if it was able to stretch its payables deferral period to 25 days?
Assume the collection patterns of both GCP and it's customers do not change. a.) Construct a balance sheet for GCP at the close of business on day 31. Remember the employees salaries will have been paid at the beginning of the day for the previous 15 days they have worked, so accrued wages will include only one day of salaries (day 31) . b.) How long will it take GCP to pay off the bank loan it took out on day 16 if the daily cash profits are used to repay the loan? Ignore any interest costs. | 
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