Define the cash conversion cycle. 

b. Calculate BBB's Average Age of Inventory. (4 marks)

c. Calculate BBB's Average Collection Period. (4 marks)

d. Calculate the Accounts Payable Period. (4 marks)

e. Calculate the BBB's cash conversion cycle. (4 marks)

f. Advise BBB on what they should do to reduce their cash conversion cycle. (3 marks)

g. Explain two strategies that BBB can use to fund its cash conversion cycle requirements. (4 marks)

Sales P10, 000,000

Average inventories P2, 000,000

Cost of goods sold P8, 000,000

Receivables P666, 667

Average Accounts payable P666, 667

 

Answer rating: 100% (QA)

a Definition of Cash Conversion Cycle The cash conversion cycle CCC is a financial metric that measures the time it takes for a company to convert its ... View the full answer