Garrett Industries turns over its inventory 6 times each year; it has an average collection period of 43 days and an average payment period of 31 days. The firm's annual sales are $2.6 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year.

a. Calculate the firm's cash conversion cycle, its daily cash operating expenditure, and the amount of resources needed to support its cash conversion cycle.
b. Find the firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously.
1. Shortens the average age of inventory by 4 days.
2. Speeds the collection of accounts receivable by an average of 9 days.
3. Extends the average payment period by 9 days.

c. If the firm pays 14% for its resource investment, by how much, if anything, could it increase its annual profit as a result of the changes in part (b)?
d. If the annual cost of achieving the profit in part (c) is $35,000, what action would you recommend to the firm? Why?

Which of the following statements is not correct? 1) trade allows for specialization. 2) trade has the potential to benefit all nations. 3) trade allows nations to consume outside of their production possibilities curves. 4) absolute advantage is the driving force of specialization.

5. profit maximization and shutting down in the short run suppose that the market for polos is a competitive market. the following graph shows the daily cost curves of a firm operating in this market. 0 2 4 6 8 10 12 14 16 18 20 50 45 40 35 30 25 20 15 10 5 0 price (dollars per polo) quantity (thousands of polos) mc atc avc for each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. assume that if the firm is indifferent between producing and shutting down, it will produce. (hint: you can select the purple points [diamond symbols] on the previous graph to see precise information on average variable cost.) price quantity total revenue fixed cost variable cost profit (dollars per polo) (polos) (dollars) (dollars) (dollars) (dollars) 12.50 135,000 27.50 135,000 45.00 135,000 if the firm shuts down, it must incur its fixed costs (fc) in the short run. in this case, the firm's fixed cost is $135,000 per day. in other words, if it shuts down, the firm would suffer losses of $135,000 per day until its fixed costs end (such as the expiration of a building lease). this firm's shutdown price—that is, the price below which it is optimal for the firm to shut down—is per polo.

Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered