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afrah afrah
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A year ago
Bello Corp. has annual sales of $50,735,000, cost of goods sold of 90% of sales, an average inventory level of $15,012,000, and average accounts receivable of $10,008,000. The company makes all purchases on credit and has always paid on the 30th day. However, it now plans to take full advantage of trade credit and pay its suppliers on the 40th day. The CFO also believes that sales can be maintained at the existing level but average inventory can be lowered by $1,946,000 and average accounts receivable by $1,946,000. What will be the net change in the cash conversion cycle, assuming a 365-day year?


▸

–14.0 days



▸

–18.8 days



▸

–25.6 days



▸

–39.6 days

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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GlitterBug11GlitterBug11
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A year ago
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afrah Author
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A year ago
Thanks for your help!!
Shuqin
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Yesterday
Just got PERFECT on my quiz
amandamraz
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2 hours ago
Good timing, thanks!
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