Sunset Manufacturing has the following financial data: Days of Sales Outstanding (DSO) = 27.5 days Days of Inventory on Hand (DOH) = 50.2 days Days of Payables Outstanding (DPO) = 38.3 days Credit sales terms allow buyers 30 days to pay balances owed. What is the firm's cash conversion cycle (CCC)?
Sunset Manufacturing has the following financial data: Days of Sales Outstanding (DSO) = 27.5 days Days of Inventory on Hand (DOH) = 50.2 days Days of Payables Outstanding (DPO) = 38.3 days Credit sales terms allow buyers 30 days to pay balances owed. What is the firm's cash conversion cycle (CCC)?
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Provide correct cash conversion cycle of this financial accounting question
Transcribed Image Text:Sunset Manufacturing has the following financial data:
Days of Sales Outstanding (DSO) = 27.5 days
Days of Inventory on Hand (DOH) = 50.2 days
Days of Payables Outstanding (DPO) = 38.3 days
Credit sales terms allow buyers 30 days to pay balances owed.
What is the firm's cash conversion cycle (CCC)?
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