Your boss asks you to compute your company's cash conversion cycle. Looking at the financial statements,...

 

Transcribed Image Text:

Your boss asks you to compute your company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $26,600, accounts receivable averaged $23,200, and accounts payable averaged $13,700. You also see that the company had sales of $147,000 and that cost of goods sold was $117,600. Calculate firm's cash conversion cycle. (Use 365 days for calculation. Round intermediate calculations and final answer to 1 decimal place, e.g. 15.1.) The firm's cash conversion cycle is days. Your boss asks you to compute your company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $26,600, accounts receivable averaged $23,200, and accounts payable averaged $13,700. You also see that the company had sales of $147,000 and that cost of goods sold was $117,600. Calculate firm's cash conversion cycle. (Use 365 days for calculation. Round intermediate calculations and final answer to 1 decimal place, e.g. 15.1.) The firm's cash conversion cycle is days.

Answer rating: 100% (QA)

To calculate the cash conversion cycle CCC we need to find the followi... View the full answer