× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
z
4
n
4
t
4
k
3
x
3
r
3
m
3
j
3
c
3
l
3
e
3
s
2
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
samualson samualson
wrote...
Posts: 2459
Rep: 13 0
6 years ago
Beverly Corp. had total sales of $1,200,000 in 2010 (80 percent of its sales are credit). The company's gross profit margin is 25 percent, its ending inventory is $150,000, and its accounts receivable balance is $90,000. What additional amount of cash could the firm have generated if it had increased its inventory turnover ratio to 9.0 and reduced its average collection period to 28.21875 days?
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
Read 98 times
3 Replies

Related Topics

Replies
wrote...
#1
6 years ago
 Currently, cost of goods sold is $900,000 and inventory turnover is 6. To increase inventory turnover to 9, the inventory balance would need to decrease to $100,000, or a decrease of $50,000, resulting in additional cash of $50,000.
 
samualson Author
wrote...
#2
6 years ago
Oh god, I was lost before coming here. Thanksss
wrote...
#3
6 years ago
Great, make sure you mark the topic solved, it hides it from other eyes Slight Smile
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  546 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 257
  
 235
  
 1230
Your Opinion
Who will win the 2024 president election?
Votes: 119
Closes: November 4
Previous poll results: Which of the following is the best resource to supplement your studies: