Answer me IF A COMPANY HAS A DAYS INVENTORY OUTSTANDING OF 45 DAYS, DAYS SALES OUTSTANDINGOF 30 DAYS, AND DAYS PAYABLE OUTSTANDING OF 20 DAYS, WHAT IS THE CASH CONVERSIONCYCLE?A) 45 DAYSB) 55 DAYSC) 65 DAYSD) 75 DAYS

Explanation of Cash Conversion Cycle (CCC): The Cash Conversion Cycle (CCC) measures the time it…

Answered: IF A COMPANY HAS A DAYS INVENTORY…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 8CDQ

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IF DAYS INVENTORY OUTSTANDING IS 30, DAYS SALES OUTSTANDING IS 25, AND DAYS PAYABLE OUTSTANDING IS 20, WHAT IS THE CASH CONVERSION CYCLE?
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IF A COMPANY HAS A DAYS INVENTORY OUTSTANDING OF 45 DAYS, DAYS SALES OUTSTANDING OF 30 DAYS, AND DAYS PAYABLE OUTSTANDING OF 20 DAYS, WHAT IS THE CASH CONVERSION CYCLE? A) 45 DAYS B) 55 DAYS C) 65 DAYS D) 75 DAYS