Barton's Construction management estimates that it takes the company 30 days on average to pay off its suppliers. It also knows that the company has days' sales in inventory of 60 days and days' sales outstanding of 35 days. How does Barton's cash conversion cycle compare with the industry average of 80 days?

Barton's Construction management estimates that it takes the company 30 days on average to pay off its suppliers. It also knows that the company has days' sales in inventory of 60 days and days' sales outstanding of 35 days. How does Barton's cash conversion cycle compare with the industry average of 80 days?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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