Your CFO asks you to calculate the company's cash conversion cycle. The financial statements show average inventory of $185,000, accounts receivable of $142,000, and accounts payable of $165,000. The company had annual sales of $480,000 and cost of goods sold of $384,000. What is the firm's cash conversion cycle? Round to the nearest day.
Your CFO asks you to calculate the company's cash conversion cycle. The financial statements show average inventory of $185,000, accounts receivable of $142,000, and accounts payable of $165,000. The company had annual sales of $480,000 and cost of goods sold of $384,000. What is the firm's cash conversion cycle? Round to the nearest day.
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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need help with this General accounting question
Transcribed Image Text:Your CFO asks you to calculate the company's cash
conversion cycle. The financial statements show average
inventory of $185,000, accounts receivable of $142,000,
and accounts payable of $165,000. The company had
annual sales of $480,000 and cost of goods sold of
$384,000. What is the firm's cash conversion cycle?
Round to the nearest day.
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