Crate & Barrel, Inc.

Inventory Turnover TC TC 25
TC TC
Average age of inventory TCTC
TC TC
Average collection period TCTC 36
TC TC
Average payment period TC TC 22
TC TC
Annual sales TC TC $ 140,250,000
TC TC
Operating cycle TC TC
TC TC
A Cash conversion cycle TC TC
TC TC
Daily financing TC TC
TC TC
Resources needed TC TC
TC TC
B Inventory Turnover TC TC 25
TC TC
Average age of inventory TCTC
TC TC
Average collection period TCTC
TC TC
Average payment period TC TC
TC TC
Annual sales TC TC $ 140,250,000
TC TC
Operating cycle TC TC
TC TC
Cash conversion cycle TC TC
TC TC
Resources needed TC TC
TC TC
C Cost fo Produce the Difference
TCin CCC TC
TC TC
Reduced cost TC
TC TC
Cost to implement project TC $ 900,000
TC TC
D TC
IntelliSensor

Current situation TC TC TC
TC
Sales units TC TC 1,500,000
TC TC
Sales price TC TC $ 29.00
TC
Variable cost per unit TC TC $ 10.00
TC
Average collection period TC TC 60
TC

New situation TC TC
TC TC
Sales units TC TC 1,750,000
TC TC
Sales price TC TC $ 29.00
TC TC
Variable cost per unit TC TC $ 10.00
TC TC
discount TC TC 1.5%
TC TC
Percentage taking discount TC TC 55%
TC TC
Discount period TC TC 10
TC TC
Average collection period TC TC 32
TC TC
required return TC TC 15%
TC TC TC
Additional profit from sales TC
TC TC TC
Average investment New TC TC
TC TC
Average investment Old TC TC
TC TC
Change in investment TC TC
TC TC TC
Cost savings from reduced investment TC
TC TC
Cost of discount TC TC
TC TC
Net savings from plan TC TC
TC TC
All American, Inc.
Supplier TC Credit Terms TC
A TC 1/15 net 35 TC
TC TC

TC TC
Cost to give up discount TC
TC TC
Borrowing cost = 20% TC
TC TC
Capital Industries, Inc.

Accounts Receivable to be factored TC TC $1,000,000

TC TC
Interest rate TC TC 3.00%
TC TC
Prime rate TC TC 5.50%
TC TC
Commission charge TC TC 3%
TC TC
Lending percentage TC TC 75%
TC TC
Adjustment for returns percentage TC TC 20%
TC TC
Maximum lent on accounts receivable TC TC
TC TC
Borrowed amount TC TC $550,000
TC TC
Interest cost TC TC
TC TC
effective annual interest rate if 12 months TC TC
TC TC
Interest cost if for 6 months TC TC
TC TC
effective annual interest rate if 6 months TC TC