Working capital management and returngenerationWorkBook(Task)Bachelor’s Degree in Finance and BankingThe management of working capital and thegeneration ofRendimientosInstructions: Read the following case carefully and do what is requested.Camp Manufacturing rotates its inventory four times a year; its average payout period is30 days,while the collection period is 50 days. Its annual sales are equivalent to$300,000 USD and the cost of goods sold to $200,100.00 dls.The organization wants to increase its returns through workingCurrently, it has credit sales of $200,500 USD per year,pricedcapital management.at $25 USD per unitand variable costs of $20 USD also per unit. The required return on the investmentyou made at the beginning is 14%.The company is also considering implementing a change in accounts receivable thatproduces an increaseor 25% in sales and in the average collection period, withoutvariations in bad debts.Another option is for the company to relax its credit standards to increase its level of sales,as these are in decline. With thisrelaxation, sales are expected to increase by 10% overthe next year, the average collection period to increase by 60 to 70 days and baddebts to increase sales by 1 to 3%.1.Calculates the company’s current cash conversion and operating cycle.Average inventory days (DPI) :Average collection days (DPC)91 days:50daysAverage paydays (DPP)30 days:CCE = DPI + DPC – DPPACCOUNTS RECEIVABLE … Purchase document to see full attachment
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