What Is the Cash Conversion Cycle for a Firm with $3

question 109

Multiple Choice

What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 45 days, and an annual cost of goods sold of $18 million?

• A)14.59 days
• B)46.25 days
• C)75.41 days
• D)136.25 days Cash conversion cycle = inventory period + receivables period - accounts payable period
• =

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