Wolfgang's Masonry management estimates that it takes the company 27 days on average to pay off its suppliers. It also knows that the company has days' sales in inventory of 64 days and days' sales outstanding of 32 days. How does Wolfgang's cash conversion cycle compare with the industry average of 75 days?
Wolfgang's Masonry management estimates that it takes the company 27 days on average to pay off its suppliers. It also knows that the company has days' sales in inventory of 64 days and days' sales outstanding of 32 days. How does Wolfgang's cash conversion cycle compare with the industry average of 75 days?
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Transcribed Image Text:Wolfgang's Masonry management estimates that it takes
the company 27 days on average to pay off its suppliers.
It also knows that the company has days' sales in
inventory of 64 days and days' sales outstanding of 32
days. How does Wolfgang's cash conversion cycle
compare with the industry average of 75 days?
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