I am searching for the correct answer to this financial accounting problem with proper accounting rules. If the average age of inventory is 70 days, the average age ofaccounts payable is 40 days, and the average age of accountsreceivable is 50 days, what is the number of days in the cashflow cycle (cash conversion cycle)?A. 160 daysB. 120 daysC. 80 daysD. 110 days

Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial…

Answered: If the average age of inventory is 70…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4BE

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If the average age of inventory is 90 days, the average age of accounts payable is 60 days, and the average age of accounts receivable is 65 days, the number of days in the cash flow cycle is__ days.
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If the average age of inventory is 70 days, the average age of accounts payable is 40 days, and the average age of accounts receivable is 50 days, what is the number of days in the cash flow cycle (cash conversion cycle)? A. 160 days B. 120 days C. 80 days D. 110 days