What Is the Length of the Cash Conversion Cycle for a Firm

question 58

Essay

What is the length of the cash conversion cycle for a firm with $50,000 in inventory, $60,000 in average receivables, $30,000 in average payables, annual sales of $700,000, and a cost of goods sold of 75%?

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Definitions:

Uniform

Consistent or identical in form, manner, or character among different instances or places.

State

Refers to a politically organized body of people usually occupying a definite territory; especially, one that is sovereign.

Bait-And-Switch

A deceitful sales tactic where a customer is lured by an advertisement for a low-priced item but then is persuaded to buy a more expensive one.

Advertise

The act of promoting products, services, or brands to potential customers through various media.