Answer to Question #268698 in Economics for Mokopa

Question

Allowo Fishing Products (AFP) Ltd is analysing the performance of its cash

management. On average, the firm holds inventory 65 days, pays its suppliers in 35

days, and collects its receivables in 15 days. The firm has a current annual outlay of

R1 960 000 on operating cycle investments. AFP Ltd currently pays 10% for its

negotiated financing (assume a 360-day year).

14. The firm’s cash conversion and operating cycles are … and … days

respectively.

Answer 1

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