6. For the Cook County Company, the average age of accounts receivable is 60 days, the...

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6. For the Cook County Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the fims cash conversion cycle?

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Answer 1

Answer #1

Answer:

Cash Conversion Cycle = Days Sales Outstanding + Days Inventory Outstanding - Days Payable Outstanding
Cash Conversion Cycle = 60 days + 72 days - 45 days
Cash Conversion Cycle = 87 days

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Answer 2

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6. For the Cook County Company, the average age of accounts receivable is 60 days, the...

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