What is the length of the firm's cash conversion cycle for this accounting question? For the Cook County Company, the average age ofaccounts receivable is 60 days, the average age ofaccounts payable is 45 days, and the average age ofinventory is 72 days. Assuming a 365-day year, what isthe length of the firm's cash conversion cycle?a. 87 daysb. 90 daysc. 65 daysd. 48 dayse. 66 days

The cash conversion cycle (CCC) is a measure of how long a company takes to convert its investments…

Answered: For the Cook County Company, the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

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.
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?
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 59 days Receivables Collection Period = 19 days Payables Deferral Period = 41 days Please explain process and show calculations.
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
Provide correct solution
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
What is the firm's cash conversion cycle on this accounting question?
If the days inventory is 50, days receivable is 17 and days payable is 25 and assuming 365 days in a year, then the cash conversion cycle is equal to: a. 92 Days b. 58 Days c. 42 Days d. 67 Days e. 75 Days
Watts Industries' carries 87 days in Inventory, and collects its Accounts Receivable in 75 days. If the firm pays its Accounts Payable in 26 days, what is Watts' Cash Conversion Cycle?
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?
Considering the following information, calculate the cash conversion cycle. There are 365 days in a year. A/R $ 25,000 Inventories $ 50,000 A/P $ 30,000 Accruals $ 10,000 Bank Loan $ 45,000 Net Sales $ 500,000 COGS $ 200,000 36.5 days. 73 days. 18.25 days. 91.25 days. -73 days. -45 days.
Below is a cash flow projection on a sequential-pay CMO, which has four tranches, A through D. Assume the four tranches get paid in the order of A->B->C->D. In this month tranche A has an outstanding balance of 84,000 and B has an outstanding balance of 36,000. What is the principal payment towards tranche B in this month? Enter your answer in thousands of dollars, with no decimals. For example, if your answer is $40,000, then enter 40. month 39 beginning balance $599,000 scheduled principal payment $25,000 Prepayment $18,000 Interest to MBS investors $51,000

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