IDNLearn.com provides a user-friendly platform for finding answers to your questions. Get accurate and detailed answers to your questions from our knowledgeable and dedicated community members.

Using the information below, compute the cash conversion cycle:_______.
Days’ sales in accounts receivable 35 days
Days’ sales in inventory 52 days
Days’ payable outstanding 45 days
a. 51 days.
b. 12 days.
c. 47 days.
d. 42 days.
e. 87 days.


Sagot :

Answer:

42 days

Explanation:

Days sales in account receivable is 35 days.

Day sales in inventory is 52 days

Days payable outs anding is 45 days

Therefore the cash conversion cycle can be calculated as follows

= 35 days+ 52days-45days

= 87 days-45 days.

= 42 days

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. Your search for answers ends at IDNLearn.com. Thank you for visiting, and we hope to assist you again soon.