The Christie Corporation is trying to determine the effect ofits inventory turnover ratio and days sales outstanding (DSO) onits cash flow cycle. Christie s sales last year(all on credit) were $150000 and it earned a net profit of 6% or$9000. It turned over its inventory 7.5 times during the year andits DSO was 36.5 days. Its annual cost of goods sold was $121667.The firm had fixed assets totaling $35000.Christies payables deferral period is 40days.
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