Determine the Cash Conversion Cycle Based on the Following Information

question 22

Multiple Choice

Determine the cash conversion cycle based on the following information: inventory-to-sale conversion period = 112.9 days; sale-to-cash conversion period = 57.1 days; and purchase-to-payment conversion period = 76.8 days.

• A) 93.2 days
• B) 132.6 days
• C) 170.0 days
• D) 246.8 days
• E) 365.0 days

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Definitions:

Weak Form Efficient

A market efficiency theory stating that all past trading information is already reflected in stock prices, and that technical analysis cannot consistently produce excess returns.

Investment Risk

The possibility of losing some or all of an investment's value due to various factors including market volatility, economic conditions, or company performance.

Historical Return

The return that an investment has generated over a specified period of time in the past.

Investment Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.