What is the length of the firm's cash conversion cycle on these accounting question? For the Bayer Company, the average age ofaccounts receivable is 60 days, the average ageof accounts payable is 45 days, and the averageage of inventory is 72 days. Assuming a 365-dayyear, what is the length of the firm's cashconversion cycle?

Step 1: Define Cash Conversion CycleThe cash operating cycle is operating cycle less creditors…

Answered: For the Bayer Company, the average age…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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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 of the firm's cash conversion cycle?
What is the length of the firm's cash conversion cycle on this accounting question?
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If the average age of the inventory is 90 days, the average age of accounts payable is 65 days, and the average age of accounts receivable is 60 days, how many days would be the net cash cycle?
Inmoo Company's average age of accounts receivable is 89 days, the average age of accounts payable is 40 days, and the average age of inventory is 48 days. Assuming a 365-day year, what is the length of its cash conversion cycle? Please explain process and show calculations.
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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
Company’s average age of accounts receivable is 40 days, while the average age of accounts payable is 45 Its inventory turnover is 5.3 times. Assuming a 365-day year, what is the length of its cash conversion cycle?
A firm has an average age of inventory of 100 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's cash conversion cycle is?
Cass & Company has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 40 days Receivables Collection Period = 17 days Payables Deferral Period = 25 days Question options: 35 days 31 days 25 days 32 days 33 days
Assume a firm has a cash cycle of 73 days and an operating cycle of 127 days.What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.)
What will be the firm's operating cycle?

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