What is the length of the firm's cash conversion cycle on this accounting question? For Omega Corporation, the average age of accountsreceivable is 50 days, the average age of accounts payable is40 days, and the average age of inventory is 65 days.Assuming a 365-day year, what is the length of the firm'scash conversion cycle?

Step 1: Define Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial metric that…

Answered: For Omega Corporation, the average age…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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For Omega Corporation, 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 65 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?