A company has the following financial metrics: ⚫ Days of Inventory Outstanding: 38.5 days Days of Sales Outstanding: 27.2 days ⚫ Days of Payables Outstanding: 32.4 days ⚫ Credit terms offered to customers: Net 45 days What is the company's cash conversion cycle? A. 65.7 days B. 33.3 days C. 98.1 days D. 78.1 days
A company has the following financial metrics: ⚫ Days of Inventory Outstanding: 38.5 days Days of Sales Outstanding: 27.2 days ⚫ Days of Payables Outstanding: 32.4 days ⚫ Credit terms offered to customers: Net 45 days What is the company's cash conversion cycle? A. 65.7 days B. 33.3 days C. 98.1 days D. 78.1 days
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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Transcribed Image Text:A company has the following financial metrics:
⚫ Days of Inventory Outstanding: 38.5 days
Days of Sales Outstanding: 27.2 days
⚫ Days of Payables Outstanding: 32.4 days
⚫ Credit terms offered to customers: Net 45 days
What is the company's cash conversion cycle?
A. 65.7 days
B. 33.3 days
C. 98.1 days
D. 78.1 days
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