Give correct answer for this question You are provided the following working capitalinformation for the Ridge Company:AccountInventory$$12,890Accounts receivable 12,800Accounts payable 12,670Net sales$124,589Cost of goods sold 99,630What is the cash conversion cycle for Ridge Company?a. 38.3 daysb. 129.9 daysc. 83.5 daysd. 46.4 days

Step 1: Define Cash Conversion CycleThe cash conversion cycle is a quantitative measure that…

Answered: You are provided the following working…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 10P

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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
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