ABC has $45 million of accounts receivable, $43 million of inventory, and $61 million of accounts payable. Its average daily sales are $814,000 and its gross profit margin is 30%. What is the firm's cash conversion cycle?
ABC has $45 million of accounts receivable, $43 million of inventory, and $61 million of accounts payable. Its average daily sales are $814,000 and its gross profit margin is 30%. What is the firm's cash conversion cycle?
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:ABC has $45 million of accounts receivable, $43
million of inventory, and $61 million of accounts
payable. Its average daily sales are $814,000 and
its gross profit margin is 30%. What is the firm's
cash conversion cycle?
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