Atlas Corporation wants to assess its cash conversion cycle (CCC). Financial analysis shows that on average the company holds items in inventory for 60 days, pays its suppliers 35 days after purchase, and collects its receivables after 45 days. The company's annual sales (all on credit) are approximately $5.2 billion, its cost of goods sold represents about 65 percent of sales, and purchases represent about 50 percent of the cost of goods sold. Assume a 365-day year. What is Atlas Corporation's cash conversion cycle (CCC)?

Atlas Corporation wants to assess its cash conversion cycle (CCC). Financial analysis shows that on average the company holds items in inventory for 60 days, pays its suppliers 35 days after purchase, and collects its receivables after 45 days. The company's annual sales (all on credit) are approximately $5.2 billion, its cost of goods sold represents about 65 percent of sales, and purchases represent about 50 percent of the cost of goods sold. Assume a 365-day year. What is Atlas Corporation's cash conversion cycle (CCC)?

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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