For a venture the inventory-to-sale conversion period is 55 days.The sale-to-cash conversion period is 25...
For a venture the inventory-to-sale conversion period is 55 days.
The sale-to-cash conversion period is 25 days. The
purchase-to-payment conversion period is 35 days. Find the cash
conversion cycle.
a. 45 days
b. 25 days
c. 10 days
d. 5 days
e. 2 days
Homework Answers
Cash Conversion Ratio = Days inventories Outstanding + Days Sales Outstaning - Days payable Outstanding
= 55 + 25 - 35
= 45 days
Option A is correct.
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