Financial variables for BllDawg Incorporated:
Annual revenues= $10,000,000
COGS= 60% of revenues
Average inventory balance= $1,000,000
a) What is DIH?
b) What level of inventory is implied if the DIH was lowered to 40 days, assuming all other variables held constant?
Building on the previous question, assume that BullDawgs average recievables balance is $500,000
a) What is the DSO?
b) What level of recievables is impied if the DSO was lowered to 10 days, assuming all other variables are held constant?