Study questions platform-wide or filter by specific tests with correct answers revealed.
Nishat Textiles has the following data for the current year:
Current ratio $= 2:1$; Average age of inventory $= 60$ days; Average collection period $= 30$ days; Average payable period $= 40$ days.
Calculate the Cash Conversion Cycle (CCC).
The Cash Conversion Cycle formula is:
$\text{CCC} = \text{Days Inventory Outstanding} + \text{Days Sales Outstanding} - \text{Days Payable Outstanding}$
$= 60 + 30 - 40 = \mathbf{50 \text{ days}}$
The CCC measures how long it takes a firm to convert its investments in inventory and other resources into cash flows from sales. A shorter CCC generally indicates better liquidity management.
Area of regular hexagon with side \(s\: \(A = \dfrac{3\sqrt{3}}{2}s^2\
Setting equal: \(\dfrac{3\sqrt{3}}{2}s^2 = 54\sqrt{3}\
\(s^2 = \dfrac{54\sqrt{3} \times 2}{3\sqrt{3}} = \dfrac{108}{3} = 36\
\(s = 6\ \text{cm}\
Verification: \(\dfrac{3\sqrt{3}}{2} \times 36 = 54\sqrt{3}\ β
Sign in to join the conversation and share your thoughts.
Log In to Comment