For Sterling Enterprises, the average age of accounts receivable is 55 days, the average age of accounts payable is 50 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?

For Sterling Enterprises, the average age of accounts receivable is 55 days, the average age of accounts payable is 50 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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 10EB: You have been depositing money into an account yearly based on the following investment amounts,...

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Question

What is the length of the firm's cash conversion cycle on these financial accounting question?

For Sterling Enterprises, the average age of accounts receivable is 55 days,
the average age of accounts payable is 50 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?

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