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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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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