Answered: National Co. has an inventory…

National Co. has an inventory conversion period of 65 days, a receivables conversion period of 42 days, and a payments cycle of 33 days. What is the length of firm's cash conversion cycle?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

National Co. has an inventory conversion period of 65 days, a receivables conversion period of
42 days, and a payments cycle of 33 days. What is the length of firm's cash conversion cycle? *
Format: 11

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