The correct answer is mentioned below :
The correct answer is option " 45 Days "
Please see the below mentioned formula :
Cash conversion cycle = Days inventory oustanding + Days sales outstanding - Days payables outstanding
85 days = Days inventory oustanding + 50 days - 10 Days
Days inventory oustanding = 85 days - 40 days
Days inventory oustanding = 45 days
Suppose the cash cycle is 85 days, the accounts payable period is 10 days, and the...
Suppose the operating cycle is 60 days, the accounts payable period is 15 days, and the accounts receivable period 40 days. How long is the cash cycle? o 20 days o 25 days O 45 days O 75 days
Loblaws has an inventory turnover rate of 12.3, an accounts payable period of 30 days, and an accounts receivable period of 40 days. What is the length of the cash cycle? 39.67 days 41.13 days 37.88 days 34.42 days 30.71 days
13. Ives Corp. has an inventory period of 22.8 days, an accounts payable period of 38.3 days, and an accounts receivable period of 32.3 days. What is the company's cash cycle? A. 55.1 days B. 47.8 days
2. The operating cycle is based on the: a) Cash cycle plus Accounts Receivable period b) Inventory period plus Accounts Receivable period c) Accounts Payable period minus Cash cycle d) Accounts Payable period minus Accounts Receivable period PLEASE HELP WIHT THE QUESTION
7. The longer the firm's accounts payable period, the: A. longer the firm's cash cycle. B. greater the delay in the accounts receivable period. C. less the firm must invest in net working capital. D. shorter the firm's inventory period.
The cash operating cycle can be computed as ________. A.days accounts payable outstanding + days sales outstanding minus− days inventory on hand B.days accounts payable outstanding minus− days sales outstanding minus− days inventory on hand C.days accounts payable outstanding minus− days sales outstanding + days inventory on hand D. days accounts payable outstanding + days sales outstanding + days inventory on hand
Hanse, Inc., has a cash cycle of 38.5 days, an operating cycle of 62.4 days, and an Inventory period of 24.4 days. The company reported cost of goods sold in the amount of $445,000, and credit sales were $724,000. What is the company's average balance in accounts payable and accounts receivable? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average accounts payable Average accounts receivable
ABC Company currently has a cash cycle of 270 days. The company went through a management change. The new management has changed the working capital policies for the company. The new policies will decrease the inventory period by 28 days, decrease the accounts receivable period by 39 days, and decrease the accounts payable period by 40 days. Calculate the number of days in the new cash cycle after the above changes become effective? That is, what is the new cash...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 73 days, an average collection period of 40 days, and a payables deferral period of 37 days. Assume that cost of goods sold is 80% of sales. Assume 365 days in year for your calculations. 1. What is the length of the firm's cash conversion cycle? days 2. If Negus's annual sales are $3,437,675 and all sales are on credit, what is the firm's investment in accounts receivable? Round...
Monar Inc.'s CFO would like to decrease its cash conversion cycle by 10 days. The company carries average inventory of $750,000. Its annual sales are $10 million, its cost of goods sold is 75% of annual sales, and its average collection period is twice as long as its inventory conversion period. It uses a 365-day year. The firm buys on terms of net 30 days, and it pays on time. The CFO believes he can reduce the average inventory to...