Starlight Electronics Ltd. has the following information: • The average age of accounts receivable is 45 days. The average age of accounts payable is 30 days. • The average age of inventory is 60 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?
Starlight Electronics Ltd. has the following information: • The average age of accounts receivable is 45 days. The average age of accounts payable is 30 days. • The average age of inventory is 60 days. Assuming a 365-day year, what is the length of the firm's cash conversion cycle?
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 17P
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Please provide the answer to this financial accounting question with proper steps.
Transcribed Image Text:Starlight Electronics Ltd. has the following
information:
•
The average age of accounts receivable is 45 days.
The average age of accounts payable is 30 days.
•
The average age of inventory is 60 days.
Assuming a 365-day year, what is the length of the
firm's cash conversion cycle?
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