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Your Boss Asks You to Compute the Company's Cash Conversion

question 58

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Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $126,300, accounts receivable were $97,900, and accounts payable were at $115,100. You also see that the company had credit sales of $324,000 and that cost of goods sold was $282,000. What is your firm's cash conversion cycle? Round to the nearest day.


Definitions:

Linear Model

A statistical method that describes the relationship between two or more variables using a straight line.

Regression

A statistical method used to understand the relationship between a dependent variable and one or more independent variables.

Kilowatt-Hours

A unit of energy measurement equal to the power consumption of one thousand watts for one hour.

Square Feet

A unit of area measurement in the Imperial and US customary systems, used to measure the size of an area.

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