An analyst has gathered the following data about a company . Average receivables collection period of 37 days . Average payables payment period of 30 days. . Average inventory processing period of 46 days What is their cash conversion cycle?
An analyst has gathered the following data about a company . Average receivables collection period of 37 days . Average payables payment period of 30 days. . Average inventory processing period of 46 days What is their cash conversion cycle?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:An analyst has gathered the following data about a company:
Average receivables collection period of 37 days
Average payables payment period of 30 days.
. Average inventory processing period of 46 days
What is their cash conversion cycle?
The following data applies to the GCI Company:
Sales $1,000,000.
Receivables- S260,000.
• Payables S600,000.
Purchases S800,000.
COGS - S800,000.
Inventory $400,000.
Net Income $50,000.
Total Assets - $800,000.
• Debt/Equity 200%.
What is the average collection period, the average inventory processing period, and the payables payment
neriod for GCI Company?
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