Tryst Energy Inc. has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm's total annual outlays for operating cycle investments are $3.65 million. Assuming a 365-day year, how much financing is required to support its cash conversion cycle?

1 answer
Question:

Tryst Energy Inc. has an average age of inventory of 65 days, an average collection period of 60 days and an average payment period of 65 days. The firm's total annual outlays for operating cycle investments are $3.65 million. Assuming a 365-day year, how much financing is required to support its cash conversion cycle?

Answers

Answer:The $600,000 amount is required to financing so that the cash conversion cycle can be supportedExplanation:For computing how much financing is required, first we have to compute the cash conversion payable which is shown below:Cash conversion cycle = Average age of inventory + Average collection period - average payment period= 65 + 60 - 65= 60 daysNow, we have to apply the financing formula which is shown below:= Firm total annual outlays for operating cycle investment × cash conversion cycle ÷ total number of days in a year= $3,650,000 × 60 days ÷ 365= $3,650,000 × 0.16438= $600,000Hence, the $600,000 amount is required to financing so that the cash conversion cycle can be supported

Similar Solved Questions

1 answer

Paano mo maipapakita na pinahahalagahan mo Ang iyong pag-aaral?Real Subject:Filipino​

Paano mo maipapakita na pinahahalagahan mo Ang iyong pag-aaral?Real Subject:Filipino​...
2 answers

What were the four social classes in the Spanish colonies of North American

What were the four social classes in the Spanish colonies of North American...
1 answer

Flow Explain why countercurrent flow met the goals and why parallel flow did not meet the goals.

Flow Explain why countercurrent flow met the goals and why parallel flow did not meet the goals....
2 answers

Find the slope, y-intercept, and the equation.

Find the slope, y-intercept, and the equation....
1 answer

One of the factors that led to the raise of industrialism in Great Britian was its

one of the factors that led to the raise of industrialism in Great Britian was its...
1 answer

You are being offered advertising at the following rates: $45 per TV ad, $300 per full page ad in a restaurant guide, and $35 per radio ad. Your budget is $1,500. Which of the following buys fit within your budget?

You are being offered advertising at the following rates: $45 per TV ad, $300 per full page ad in a restaurant guide, and $35 per radio ad. Your budget is $1,500. Which of the following buys fit within your budget?...
1 answer

When is the meaning of a literary text explicit? when the meaning involves only one central idea or theme when the meaning is stated outright in the text when the meaning is obvious to readers when the meaning is hinted at in the text

When is the meaning of a literary text explicit? when the meaning involves only one central idea or theme when the meaning is stated outright in the text when the meaning is obvious to readers when the meaning is hinted at in the text...
2 answers

What additional information could be used to prove that triangle XYZ is congruent to triangle Fe.g. using asa or aas check all that apply

What additional information could be used to prove that triangle XYZ is congruent to triangle Fe.g. using asa or aas check all that apply...
2 answers

2. The government of a country led by a king would be a

2. The government of a country led by a king would be a...
2 answers

Smith believed that people acted due to an "invisible hand" of _____. a. Self-interest b. Laissez-faire c. National wealth d. Personal pride

Smith believed that people acted due to an "invisible hand" of _____. a. Self-interest b. Laissez-faire c. National wealth d. Personal pride...
1 answer

Which cancer should you be on the lookout for in patient with a history of infectious sis

Which cancer should you be on the lookout for in patient with a history of infectious sis...
1 answer

Which statement is NOT true of the Cenozoic era A.)Much of the land was dry B.) It was a time of mountain building C.)A large meteorite collided with Earth Please answer!!!!

Which statement is NOT true of the Cenozoic era A.)Much of the land was dry B.) It was a time of mountain building C.)A large meteorite collided with Earth Please answer!!!!...
1 answer

PLEASE ANSWER QUICK I QILL GIVE BRAINLIEST TO WHOEVER ANSWERS FIRST!!!

PLEASE ANSWER QUICK I QILL GIVE BRAINLIEST TO WHOEVER ANSWERS FIRST!!!...
1 answer

Please show me how you got the answer thanks in advance

please show me how you got the answer thanks in advance...
1 answer

If the edge length of a cube is 5 cm. , then the sum of all edges =​

If the edge length of a cube is 5 cm. , then the sum of all edges =​...
1 answer

Help me as soon as possible

help me as soon as possible...
1 answer

Describe all of the van der Waals forces that exist between molecules of water.

Describe all of the van der Waals forces that exist between molecules of water....
1 answer

The Least common multiple of two numbers is 60, and one of the numbers is 7 less than the other number. What are the numbers? Justify ur anwsewer

The Least common multiple of two numbers is 60, and one of the numbers is 7 less than the other number. What are the numbers? Justify ur anwsewer...

-- 0.012939--