Question: please answer , thank you Cash Conversion Cycle 1. You have recently been hired to improve the performance of Multiplex Corporation which has been experiencing

please answer , thank you please answer , thank you Cash Conversion Cycle 1. You have recently

Cash Conversion Cycle 1. You have recently been hired to improve the performance of Multiplex Corporation which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is your estimate of the firm's current cash conversion cycle? Inventory balance S120,000 Annual sales = $600,000 Accounts receivable = $160,000 Accounts payable = $25,000 Total annual purchases $360,000 Cost of goods sold represent 80% of sales Purchases credit terms: net 30 days Receivables credit terms, net 50 days

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