{"id":86944,"date":"2022-08-12T04:03:17","date_gmt":"2022-08-12T04:03:17","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/the-christie-corporation-is-trying-to-determine-the-effect-of-its\/"},"modified":"2022-08-12T04:03:17","modified_gmt":"2022-08-12T04:03:17","slug":"the-christie-corporation-is-trying-to-determine-the-effect-of-its","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/the-christie-corporation-is-trying-to-determine-the-effect-of-its\/","title":{"rendered":"The christie corporation is trying to determine the effect of its"},"content":{"rendered":"<div id=\"\">\n<tr>\n<td colspan=\"11\"><span>The Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding(DSO) on its cash flow cycle.<\/span><\/td>\n<\/tr>\n<tr>\n<td colspan=\"10\"><span>Christie&#8217;s sales last year(on all credit)were $150,000,and it earned a net profit of 6%, or$9,000. It turned over its inventory<\/span><\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"9\"><span>7.5 times during the year,and its DSO was 36.5 days.Its annual cost of goods sold was $121,667.The firm had assets<\/span><\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\"><span>totalling $35,000. Christie&#8217;s payables deferral period is 40days.<\/span><\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\"><span>Calculate Christie&#8217;s cash conversion cycle.<\/span><\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"10\"><span>Assuming Christie holds negligible amounts of cash and marketable securities,calculate its total assets turnover and ROA.<\/span><\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"9\"><span>Suppose Christie&#8217;s managers believe the annual inventory turnover can be raised to 9 times without affecting sales.<\/span><\/td>\n<td>\u00a0<\/td>\n<td>\u00a0<\/td>\n<\/tr>\n<tr>\n<td colspan=\"10\"><span>What would Christie&#8217;s cash conversion cycle,total assets turnover,and ROA have been if inventory had been 9 for the year?<\/span><\/td>\n<\/tr>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding(DSO) on its cash flow cycle. Christie&#8217;s sales last year(on all credit)were $150,000,and it earned a net profit of 6%, or$9,000. It turned over its inventory \u00a0 7.5 times during the year,and its DSO was 36.5 days.Its annual [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-86944","post","type-post","status-publish","format-standard","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/86944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=86944"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/86944\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=86944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=86944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=86944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}