Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $158,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.87 times during the year. Its receivables balance at the end of the year was $13,110.99 and its payables balance at the end of the year was $7,409.85. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number. days
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $158,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.87 times during the year. Its receivables balance at the end of the year was $13,110.99 and its payables balance at the end of the year was $7,409.85. Using this information calculate the firm's cash conversion cycle. Do not intermediate calculations. Round your answer to the nearest whole number. days
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $158,000 and its cost of goods sold was 75% of sales. It
turned over its inventory 8.87 times during the year. Its receivables balance at the end of the year was $13,110.99 and its payables balance at the end of the year was $7,409.85. Using this information calculate the firm's cash conversion cycle. Do not
intermediate calculations. Round your answer to the nearest whole number.
days
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