Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 6: (10 marks) astra pharmaceuticals is co

Question 6: (10 marks) Astra Pharmaceuticals is concerned about managing cash efficiently. On average, inventories...

60.1K

Verified Solution

Question

Finance

image

Question 6: (10 marks) Astra Pharmaceuticals is concerned about managing cash efficiently. On average, inventories have an age of 70 days and accounts receivable are collected in 50 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $25 million. Assume there is no difference in investment per dollar in inventory, receivables and payables; and a 365-day year. a) What is the company's cash conversion cycle? (4 marks) b) Calculate Astra working capital requirement based on sales of $25 million. (3 marks) c) Discuss how Astra can reduce working capital requirement based on its current sales figures

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

he function ?f(x)equals=0.030.03xplus+500500 represents the rate of flow of money in dollars per year. Assume a? 10-year period...

Basic Math
Q

Suppose that A is an individual investor and OL represents other investors. All the investors who...

Finance
Q

Research, define, describe, and explain the above-mentioned (Minimum 250 words answer for each questions) Explain capital structure.

Finance
Q

One pipe fills a storage pool in 20 hours. A second pipe fills the same...

Basic Math
Q

mplify the following expression All variables are nonzero 4 3 42x 4y 35x6y 2x 4y...

Algebra
Q

plzzz fastttt Product Good) Good K Output and Prices for 2005...

Accounting
Q

Pregunta 4.4. (TCO 7) Huron Corporation compra 60 000 diademas al ao. El plazo de...

Accounting
Q

Water Services had net income for the month of OctoberOctober of $ 50 comma 880$50,880....

Accounting
Q

Flora's Gifts reported the following current-month data for its only product. The company uses a...

Accounting
Q

Question 5 The following information on selected cash transactions for the year has been provided...

Accounting
Q

Dorset Ltd is all-equity financed and has a cost of capital of 16 per cent...

Finance
Q

The arsets of Dalfas B. Associates consist entirely of current assets and net plant and...

Finance