Question: Eagle Sporting Goods has $2.5 million in inventory and $2 million in accounts receivable. Its average daily sales are $100,000. The firms payables deferral period

Eagle Sporting Goods has $2.5 million in inventory and

$2 million in accounts receivable. Its average daily sales are

$100,000. The firm’s payables deferral period is 30 days and average daily cost of sales are $50,000. What is the length of the firm’s cash conversion period?

a. 100 days.

b. 60 days.

c. 50 days.

d. 40 days.

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