Answered: Southport Inc. has an inventory…

Southport Inc. has an inventory turnover of 10, an ACP of 45 days, and turns over its payables once a month. How long are Southport's operating and cash conversion cycles? (Use a 360-day year.)

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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Question

How long are Southport's operating and cash conversion cycle on this general accounting question?

Southport Inc. has an inventory turnover of 10,
an ACP of 45 days, and turns over its payables
once a month. How long are Southport's
operating and cash conversion cycles? (Use a
360-day year.)

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