Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $131,300, accounts receivable were $104,900, and accounts payable were at $119,100. You also see that the company had sales of $326,000 and that cost of goods sold was $289,000. What is your firm's cash conversion cycle? Round to the nearest day.
Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $131,300, accounts receivable were $104,900, and accounts payable were at $119,100. You also see that the company had sales of $326,000 and that cost of goods sold was $289,000. What is your firm's cash conversion cycle? Round to the nearest day.
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Solve this financial accounting question
Transcribed Image Text:Your boss asks you to compute the company's cash conversion
cycle. Looking at the financial statements, you see that the
average inventory for the year was $131,300, accounts receivable
were $104,900, and accounts payable were at $119,100. You also
see that the company had sales of $326,000 and that cost of
goods sold was $289,000. What is your firm's cash conversion
cycle? Round to the nearest day.
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