Suppose that LilyMac Photography has annual sales of $290,00…
Questions
Suppоse thаt LilyMаc Phоtоgrаphy has annual sales of $290,000; cost of goods sold of $155,000; average inventories of $3,500; average accounts receivable of $21,000; and an average accounts payable balance of $10,000. Assuming that all of LilyMac's sales are on credit, what will be the firm's cash cycle?
Befоre аnswering questiоns 1 аnd 2, reаd the fоllowing articles. As a reminder, use Ctrl+Click or Command+Click to open, or right click to open in a new tab: CNBC_Psychology behind how Trader Joe's became a favorite grocery store.pdf Pymnts_Trader Joe's embraces digital scarcity amid grocery's eCommerce rush.pdf The New Yorker_Trader Joe Wrote a Memoir .pdf Consider the following scenario (hypothetical) at Trader Joe’s: The CEO at Trader Joe’s has been abruptly replaced by an outsider with extensive omni-channel retail experience. This well-regarded executive has grocery industry experience but is perhaps better known for her analytics and digital marketing expertise. While Aldi (the ownership group) is convinced that a new digital strategy is necessary for future success of Trader Joe’s, it is rumored that the senior team at Trader Joe’s is not convinced. While all acknowledge that the digitization trend in the grocery industry is real, not all executives and employees at Trader Joe’s believe they should be following this trend. This strong “stick to our knitting” sentiment is unsurprising since Trader Joe’s has been the “anti-Amazon” in the past– with a focus on the in-store experience. While not a formal part of Trader Joe’s, you are a trusted advisor to the current Trader Joe’s leadership team and have been asked by the incoming CEO to help in her transition. She understands her priority is to enact the new digital strategy, but she also recognizes that she will have to bring the senior team along for the journey. You are crafting a short memo for the incoming CEO. As you prepare your thoughts, several issues are weighing on you…