I need questions answers accounting What is the cash conversion cycle for a firm with $3million average inventories, $1.5 million averageaccounts payable, a receivables period of 40 days, andan annual cost of goods sold of $18 million?

Step 1: Define Cash cycleCash cycle refers to the number of days taken by a company to convert the…

Answered: What is the cash conversion cycle for a…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 3MC

See similar textbooks

Similar questions

Please provide correct answer accounting....
Provided the following information: Sales =$1,440,000, Cost of Goods Sold= $1,100,000, Inventory=$200,000, Receivables=$160,000, Payables=S100,000 and there are 365 days in a year. What is the cash conversion cycle for the firm? a. 113.55 Days b. 77.05 Days c. 150.05 Days d. 73 Days e. None of the above
For the Bayer Company, the average age of accounts receivable is 60 days, the average age of accounts payable is 45 days, and the average age of inventory is 72 days. Assuming a 365-day year, what is the length of of the firm's cash conversion cycle?
Whaley & Whaley has the following data. What is the firm's cash conversion cycle? Inventory conversion period = Average collection period = Payables deferral period = O a. 37 days O b. 31 days O c. 41 days Od: 45 days O e. 34 days 41 days 31 days 38 days
A firm has an average age of inventory of 100 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's cash conversion cycle is?
Follow the instructions
Need answer the question
What is the length of the firm's cash conversion cycle on these accounting question?
What will be the firm's operating cycle?
What is the length of loud noise recordings' cash conversion cycle (CCC) for this accounting question?
22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.
FMT Trading Inc. has the following financial data: Annual sales 10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000 a. What is the firm’s cash conversion cycle?b. Provide interpretations of the cash conversion cycle period of the firm.

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?