Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company has an average daily sales of P100,000. The company's payables deferral period is 30 days. Compute for the cash conversion cycle. O 100 days O 60 days O 50 days

Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company has an average daily sales of P100,000. The company's payables deferral period is 30 days. Compute for the cash conversion cycle. O 100 days O 60 days O 50 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

Problem 1PS

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Skylark Industries has P6,000,000 in inventory and P3,000,000 in
accounts receivable. The company has an average daily sales of
P100,000. The company's payables deferral period is 30 days. Compute
for the cash conversion cycle.
O 100 days
60 days
50 days
40 days
33 days

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