Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"

Carraway Seed Company

Carraway Seed Company Inc. has for many years cultivated and sold what are known as heritage plants and seeds. For​ ;example, the company has sought out older varieties of tomato plants that are no longer grown by commercial vegetable farmers since they either take too long to​ ;mature, do not ship​ ;well, or do not hold up for long on the store shelf. The company has recently been considering ways to reduce its investment in working capital in order to make itself more profitable. At present the firm has an inventory conversion period of 82 days and the majority of its customers take advantage of its credit terms of 40 days. The company purchases its inventory items on credit terms that allow them 51 days to pay but has always followed a policy of making cash payments for invoices as soon as they are​ ;received, so the accounts payable deferral period is typically only 11 days.

a.  What are​ ;Carraway’s operating and cash conversion​ ;cycles?

b.  If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible​ ;date, how would this impact their cash conversion​ ;cycle?

Need assignment help for this question?

If you need assistance with writing your essay, we are ready to help you!






Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality

c.  What would be your recommendation to the company with regard to its working capital management practices and​ ;why?

a.  ​Carraway’s operating cycle is ______ days. ​ ;(Round to the nearest whole​ ;number.)

“Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now