For Aurora Manufacturing Ltd., the average age of accounts receivable is 50 days, the average age of accounts payable is 40 days, and the average age of inventory is 68 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle? a) 78 days b) 78.33 days c) 90 days d) 68 days
For Aurora Manufacturing Ltd., the average age of accounts receivable is 50 days, the average age of accounts payable is 40 days, and the average age of inventory is 68 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle? a) 78 days b) 78.33 days c) 90 days d) 68 days
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 3P
Related questions
Question
What is the length of the firm's cash conversion cycle on these financial accounting question?
Transcribed Image Text:For Aurora Manufacturing Ltd., the average age of accounts
receivable is 50 days, the average age of accounts payable is 40
days, and the average age of inventory is 68 days. Assuming a
365-day year, what is the length of the firm's cash conversion
cycle?
a) 78 days
b) 78.33 days
c) 90 days
d) 68 days
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT