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A firm has $4 million in average inventories, $2 million in average accounts payable, a receivables period of 45 days, and an annual cost of goods sold of $22 million. What is the cash conversion cycle for the firm?

A firm has $4 million in average inventories, $2 million in average accounts payable, a receivables period of 45 days, and an annual cost of goods sold of $22 million. What is the cash conversion cycle for the firm?

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 3MC
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A firm has $4 million in average inventories, $2 million in average accounts payable, a receivables period of 45 days, and an annual cost of goods sold of $22 million. What is the cash conversion cycle for the firm?

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