What is the length of the firm's cash conversion cycle Benson Corporation has an average age of accountsreceivable of 55 days, an average age of accountspayable of 40 days, and an average age of inventory of78 days. Assuming a 365-day year, what is the lengthof the firm's cash conversion cycle?

Concept of Cash Conversion Cycle (CCC):The Cash Conversion Cycle (CCC) is a financial metric that…

Answered: Benson Corporation has an average age…

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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Assume a company is going to make an investment in a machine of $825,000 and the following are the cash flows that two different products would bring. Which of the two options would you choose based on the payback method?
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Benson Corporation has an average age of accounts receivable of 55 days, an average age of accounts payable of 40 days, and an average age of inventory of 78 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?