# Answer to Question #24102 in Finance for Nancy

Question #24102

b. What will be the impact on its net investment in working capital in 2012 if Robinson is able to reduce its collection

period by five days, its inventory period by six days, and increase its payment period by two days?

New Sales

Sales/day

New COGS

COGS/day

Estimated AR if reduced by 5 days

Old collection period 93.58

New collection period 88.58

New AR estimate 5

Estimated Inventory if conversion period reduced by 6 days

COGS/day

Old conversion period

New conversion period

New inventory estimate

Estimated AP if payment period increased by 2 days

COGS/day

Old payment period

New payment period

New AP estimate

2012 working capital

Did the working capital increase or decrease from part a?

please just help me anser this part. I have no money and I have been trying to get this done for 3 days now I need this by 8 am tomorrow

period by five days, its inventory period by six days, and increase its payment period by two days?

New Sales

Sales/day

New COGS

COGS/day

Estimated AR if reduced by 5 days

Old collection period 93.58

New collection period 88.58

New AR estimate 5

Estimated Inventory if conversion period reduced by 6 days

COGS/day

Old conversion period

New conversion period

New inventory estimate

Estimated AP if payment period increased by 2 days

COGS/day

Old payment period

New payment period

New AP estimate

2012 working capital

Did the working capital increase or decrease from part a?

please just help me anser this part. I have no money and I have been trying to get this done for 3 days now I need this by 8 am tomorrow

Expert's answer

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