Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 31 days b. 34 days C. 38 days d. 42 days e. 46 days

Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days a. 31 days b. 34 days C. 38 days d. 42 days e. 46 days

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Brothers Breads has the following data. What is the firm's cash conversion cycle? Inventory conversion
period = 50 days Average collection period = 17 days Payables deferral period = 25 days
a. 31 days
b. 34 days
C. 38 days
d. 42 days
e. 46 days

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ML has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days 34 days 46 days 31 days 38 days O 42 days
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If the Merchandise inventory account balance on 12/31/19 was 40000 and its account balance on 12/31/20 was 55000, then the effect on cash flows showas which of the following A) Increase by 15000 b) Increase by 40000 C) decrease by 15000 D) decrease by 40000
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