Last year Perpetual Plastics Company took an average of 46 days to pay suppliers and 38 days

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Last year Perpetual Plastics Company took an average of 46 days to pay suppliers and 38 days to collect its receivables. The company's average days' sales in inventory was 52 days. What was Perpetual's operating cycle and cash conversion cycle last year?
Cash Conversion Cycle
Cash conversion cycle measures the total time a business takes to convert its cash on hand to produce, pay its suppliers, sell to its customers and collect cash from its customers. The process starts with purchasing of raw materials from suppliers,...
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Fundamentals of Corporate Finance

ISBN: 978-1118845899

3rd edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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