Respond to each classmate 100 words a piece Classmate 1 The cash conversion cycle focuses on the length and time between when a firm makes cash payments (or invests in) the manufacture, labor, or inv

Respond to each classmate 100 words a piece Classmate 1 The cash conversion cycle focuses on the length and time between when a firm makes cash payments (or invests in) the manufacture, labor, or inv

Full Question:

Respond to each classmate 100 words a piece 

Classmate 1

The cash conversion cycle focuses on the length and time between when a firm makes cash payments (or invests in) the manufacture, labor, or inventory and when it receives cash inflows/ realizes a cash return from its investment in production.  There are three components of the cash conversion cycle.  The first component is the inventory conversion period or the age of inventory.  This is the average length of time required to convert raw materials into finished goods and then sell those goods.  

The second component of the cash conversion cycle is the receivables collection period or the age of receivables.  (Also known as days sales outstanding). This is the average length of time required to convert the firm’s receivables into cash.  (Simply put, collecting on a sale made on credit).  This is also known as days sales outstanding.  The final component of the cash conversion cycle is the payables deferral period.  This indicates the average length of time between the purchase of raw materials and labor and the payment of cash for this investment.  

The cash conversion cycle provides the net of the three different components described and it provides the length of time from when the firm pays for the means of production and when it receives a cash return on this investment.  It is essentially the length of time that a dollar is tied up in current assets.  

It is important to manage the cash conversion cycle because a firm’s goal should be to shorten this cycle as much as possible without harming operations. This aids in improving profits, because the longer the cash conversion cycle, the greater the necessity for additional outside financing. 

Classmate 2 

As stated in the text, the cash conversion cycle focuses on the lengths of time between when the company makes cash payments, or invests in the manufacture of inventory, and when it receives cash inflows, or realizes a cash return from its investment in production. During the cash conversion cycle, there are three other periods used in the model and they are: 1). the inventory conversion period (age of inventory) is the average length of time required to convert raw materials into finished goods and then to sell those goods and the amount of time that the product remains in inventory in various stages of completion, 2). the receivables collection period (age of receivables) is the average length of time required to convert the firm’s receivables into cash or to collect cash following a credit sale, 3). the payables deferral period (age of payables) is the average length of time between the purchase of raw materials and labor and the payment of cash for them. Therefore, the fourth period, the cash conversion cycle computation nets out the three periods, resulting in a value that equals the length of time from when the firm pays for (invests in) productive resources (materials and labor0 and when it receives cash ( a return) from the sale of products. The cash convenience cycle equals the average length of time that a dollar remains tied up (invested) in current assets.

Answer for this question was provided by a homeworkslaves.net tutor. Order your custom-written answer from the best tutors, affordably.

Tutors are waiting 24/7. Hire an Expert for this homework.

Fresh Signup Form

Approximate Cost: $9

Post now and get:

Free Plagiarism Report.
Free Revisions.
10% off on all orders.
Preferred tutor.

Homeworkslaves.net ScamAdviser
University of Suffolk, Ipswich, Bury St Edmunds, Great Yarmouth, Lowestoft assignment help
Homeworkslaves.net Trustpilot

Why work with Homeworkslaves.net Tutors

There are numerous academic assistance websites on the internet. So, what sets Homeworkslaves.net tutors apart? Is it our vocal answer to whether homework, specifically homework is a form of slavery? or is it the affordable & cheap assignment help services offered on our site? Is it the expertise of our premium tutors or is it the professionalism of our support staff? Is it the privacy that is upheld on our system or is it our money back guarantees.

We say, it is all of these:

Verified and Qualified Tutors.
High quality work.
100% Moneyback Guarantee.
Satisfaction Guarantee.
Timely delivery on all posted questions.
Responsive support on all homework related queries.
WhatsApp support for all homework queries.

We’ve also been asked whether ours is a site where students looking for an online homework slave find loads of them. We are categorical about this. our platform is not about homework slaves, instead its about relieving students off the burden of feeling like slaves. Our services are global and draw players from all walks of life. We do not regard our expert tutors as homework slaves. From our wide pool of players, we have native experts for US Students, UK Students, South African Students, Canadian Students, Australian Students, Saudi Arabian Students, among others. The biggest beneficiaries of our academic help services are international students in the US, UK, Canada, and Australia.

You can see our expert tutors and the most recent questions on our platform from students.

Tutor Profiles on Homeworkslaves.net

    • $19.00/hr
    • Experience: 9 years
    • Engineering & Architecture
    • +1
    • $25.00/hr
    • Experience: 7 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • +1
    • $12.00/hr
    • Experience: 5 years
    • Capstone Proficiency
    • Professional Academic Research and Writing with 0% Plagiarism.
    • $12.00/hr
    • Experience: 12 years
    • Data Analysis
    • Professional Academic Research and Writing with 0% Plagiarism.
    • $10.00/hr
    • Experience: 11 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • +1
    • Experience: 12 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • +1
    • $6.00/hr
    • Experience: 3 years
    • Full Stack Programming
    • +1
    • Experience: 23 years
    • Full Stack Programming
    • +1
    • $10.00/hr
    • Experience: 10 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • $10.00/hr
    • Experience: 2 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • +1
    • $20.00/hr
    • Experience: 6 years
    • Data Analysis
    • Financial Analysis
    • +2
    • $2.00/hr
    • Experience: 3 years
    • Capstone Proficiency
    • $10.00/hr
    • Experience: 3 years
    • Professional Academic Research and Writing with 0% Plagiarism.
    • +1
    • $22.00/hr
    • Experience: 6 years
    • Engineering & Architecture
    • +1
    • Experience: 0 years

Recently Posted Homework Questions

PROJECT TITLE

Reviews from Our Students

Very Supportive

Rated 5 out of 5
November 1, 2020

I hired a very supportive writer here.= and she delivered high-quality work. I will be coming back.

Donstudent

Homeworkslaves.net subject assistance efforts has everything.

No schema found. No schema found.

Post to Get 10% OFF now and on 

ALL QUESTIONS

you post, FOR LIFE

Hire the best tutor for this assignment here on Homeworkslaves.net at a student-friendly cost today, and always.

10% OFF

Get This Assignment Done NOW

Happy New Year 2022