Problem B: Cash Conversion Cycle ABC Corporation has P5,000,000 in inventory and P2,000,000 in accounts receivable. Its average daily sales are P100,000. The company has P1,500,000 in accounts payable. Its average daily purchases are P50,000. Required: 1. Days it takes to convert inventory to cash 2. Days payable outstanding 3. Cash Conversion Cycle in days
Problem B: Cash Conversion Cycle ABC Corporation has P5,000,000 in inventory and P2,000,000 in accounts receivable. Its average daily sales are P100,000. The company has P1,500,000 in accounts payable. Its average daily purchases are P50,000. Required: 1. Days it takes to convert inventory to cash 2. Days payable outstanding 3. Cash Conversion Cycle in days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem B: Cash Conversion Cycle
ABC Corporation has P5,000,000 in inventory and P2,000,000 in
company has P1,500,000 in accounts payable. Its average daily purchases are P50,000.
Required:
1. Days it takes to convert inventory to cash
2. Days payable outstanding
3. Cash Conversion Cycle in days
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