Use the following firm working capital cycle information for questions
$\begin{array}{ll}
\text { Days accruals}&10 \
\text {Days cash }& 7\
\text {Days inventory }& 33\
\text {Days accounts payables }& 21\
\text {Days accounts receivables }&35 \
\
\text { Average Daily COGS }&\$15
\end{array}$

-What are the firm's estimated working capital needs?
A) $90
B) $315
C) $660
D) $1,125
E) $2,250

Question

Use the following firm working capital cycle information for questions 
 $\begin{array}{ll}
\text { Days accruals}&10 \
\text {Days cash }& 7\
\text {Days inventory }& 33\
\text {Days accounts payables }& 21\
\text {Days accounts receivables }&35 \
\
\text { Average Daily COGS }&\$15
\end{array}$

-What are the firm's estimated working capital needs?
A) $90
B) $315
C) $660
D) $1,125
E) $2,250

Quizplus · Accepted Answer

The working capital needs are calculated as: (Days Inventory + Days Receivables - Days Payables) * Average Daily COGS = (33 + 35 - 21) * $15 = 47 * $15 = $660.

Use the Following Firm Working Capital Cycle Information for Questions