What three actions can a firm take to minimize its net working capital?
What will be an ideal response?
Working capital is minimized by speeding up the collection of cash from sales, increasing inventory turns, and slowing
down the disbursement of cash. We can incorporate all of these factors in a single measure called the cash conversion
cycle. The cash conversion cycle, or CCC, is simply the sum of days of sales outstanding and days of sales in inventory
less days of payables outstanding.
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If the first unit in a series of units takes 200 days to complete, and the learning curve is 80%, then the second unit will take 160 days
Indicate whether the statement is true or false
As a foreign exchange trade at Deutsche Bank, one of your customers would like a yen quote on Australian dollars. The current spot market rates are ¥101.37-85/U.S.$ and A$1.2924-44/U.S.$
What bid and ask yen cross rates would you quote on spot Australian dollars? What will be an ideal response?