For the Bayer Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?

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

For the Bayer Company, the average age of
accounts receivable is 60 days, the average age
of accounts payable is 45 days, and the average
age of inventory is 72 days. Assuming a 365-day
year, what is the length of the firm's cash
conversion cycle?
Transcribed Image Text:For the Bayer Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?
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