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would its operating cycle (OC), cash conversion cycle (CCC), and resource
investment need be under these more efficient conditions?
c. In terms of resource investment requirements, what is the annual cost of
Roche Publishing Company’s operational inefficiency?
d. Evaluate whether Roche’s strategy for speeding its collection of accounts
receivable would be acceptable. What annual net profit or loss would result
from implementation of the cash discount?
e. Use your finding in part d, along with the payables and inventory costs given,
to determine the total annual cost the firm would incur to achieve the industry level of operational efficiency.
f. Judging on the basis of your findings in parts c and e, should the firm incur
the annual cost to achieve the industry level of operational efficiency?
Explain why or why not. WEB EXERCISE
W Go to the Web site www.bankone.com. Click on Commercial in the left column.
1. What are the general categories of business services that Bank One offers?
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