tiplex Corporation, which has been experiencing a severe cash tage. As one part of your analysis, you want to determine the 's cash conversion cycle. Using the following information and a -day year, your estimate of the firm's current cash conversion e would be days Current inventory = P120,000. Accounts receivable = P157,808.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You have recently been hired to improve the performance of
Multiplex Corporation, which has been experiencing a severe cash
shortage. As one part of your analysis, you want to determine the
firm's cash conversion cycle. Using the following Information and a
365-day year, your estimate of the firm's current cash conversion
cycle would be __________days
Current Inventory =
P120,000.
Accounts receivable =
P157,808.
Accounts payable =
P25,000.
Annual sales
P600,000.
Total annual purchases = P365,000.
Purchases credit terms: net 30 days.
Receivables credit terms: net 50 days.
O 100
O 49
O 144
O 168
Transcribed Image Text:You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following Information and a 365-day year, your estimate of the firm's current cash conversion cycle would be __________days Current Inventory = P120,000. Accounts receivable = P157,808. Accounts payable = P25,000. Annual sales P600,000. Total annual purchases = P365,000. Purchases credit terms: net 30 days. Receivables credit terms: net 50 days. O 100 O 49 O 144 O 168
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