For the Cook County 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? a. 87 days b. 90 days c. 65 days d. 48 days e. 66 days
For the Cook County 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? a. 87 days b. 90 days c. 65 days d. 48 days e. 66 days
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 5MC
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General Accounting
Transcribed Image Text:For the Cook County 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?
a. 87 days
b. 90 days
c. 65 days
d. 48 days
e. 66 days
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