Question: Given the following information calculate Operating Cycle and Cash Conversion Cycle for MBA Inc. Days Sales Outstanding: 40 Days Payable Outstanding: 10 Day Sales in

Given the following information calculate Operating Cycle and Cash Conversion Cycle for MBA Inc.

Days Sales Outstanding: 40

Days Payable Outstanding: 10

Day Sales in Inventory: 50

a Operating Cycle= 50, Cash Conversion Cycle = 80
b Operating Cycle= 90, Cash Conversion Cycle = 80
c Operating Cycle= 50, Cash Conversion Cycle = 30
d Operating Cycle= 70, Cash Conversion Cycle = 90
e Operating Cycle= 80, Cash Conversion Cycle = 80

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!