Watin Inc's 2015 income statement reported net sales of $5,000,000. Watin's average accounts receivable during 2015 amounted to $450,000. Using 360 days to a year, Watin's:   A. Accounts receivable turnover rate is approximately 13.8 times.   B. Accounts receivable turnover rate is approximately 1.25 times.   C. Average number of days to collect an account receivable is 32 days.   D. Accounts receivable turnover rate is approximately 2 times.

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A:

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.