Calculate Inventory Conversion Period, Receivables Conversion Period, the Payment Conversion Period, and the Operating Cycle for Innovation
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate Inventory Conversion Period, Receivables Conversion Period, the Payment Conversion Period, and the Operating Cycle for Innovation Inc. given the following information. Use 365 to get an average:
- Inventory = $ 5, 600
- C O G S = $ 3, 600
- A / P = $ 2, 100
- Purchases = $ 3, 250
- Revenues = $ 4, 500
- A / R = $ 3, 200
- Calculate the Cash Conversion Cycle for the above data from Innovation Inc. and graph on a timeline.
- Can a Cash Conversion Cycle be negative? Why or why not? What does this mean?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324272055
10th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date: