Using the Information Below, Compute the Cash Conversion Cycle A) 12 Days

question 29

Multiple Choice

Using the information below, compute the cash conversion cycle: $\begin{array}{ll}\text { Days' sales in accounts receivable } & \text { 35days } \\\text { Days' sales in inventory } & \text { 52days } \\\text { Days' payable outstanding } & \text { 45days }\end{array}$

• A) 12 days.
• B) 87 days.
• C) 42 days.
• D) 47 days.
• E) 51 days.

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Definitions:

Income Statement

A report documenting a business's income, costs, and earnings during a certain timeframe.

Revenues And Expenses

Financial terms where revenues are the earnings from normal business operations and expenses are the costs incurred to earn these revenues.

Statement Of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as sales revenue, expense payments, and invoicing.