Heritage Manufacturing has the following operational metrics: • • • Days Inventory Outstanding: 42.7 days Days Sales Outstanding: 31.4 days Days Payables Outstanding: 36.8 days What is Heritage's cash conversion cycle? A. 37.3 days B. 74.1 days C. 110.9 days D. 5.9 days

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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Heritage Manufacturing has the following operational metrics:
•
•
•
Days Inventory Outstanding: 42.7 days
Days Sales Outstanding: 31.4 days
Days Payables Outstanding: 36.8 days
What is Heritage's cash conversion cycle?
A. 37.3 days
B. 74.1 days
C. 110.9 days
D. 5.9 days
Transcribed Image Text:Heritage Manufacturing has the following operational metrics: • • • Days Inventory Outstanding: 42.7 days Days Sales Outstanding: 31.4 days Days Payables Outstanding: 36.8 days What is Heritage's cash conversion cycle? A. 37.3 days B. 74.1 days C. 110.9 days D. 5.9 days
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