Zenith Electronics is growing rapidly and wants to better manage its working capital. The following financial data is available: • Average inventory = $90,000 ⚫ Annual sales = $720,000 . ⚫ Annual cost of goods sold (COGS) = $432,000 • Average accounts receivable = $180,000 Average accounts payable = $36,000 What is the Cash Conversion Cycle?

Zenith Electronics is growing rapidly and wants to better manage its working capital. The following financial data is available: • Average inventory = $90,000 ⚫ Annual sales = $720,000 . ⚫ Annual cost of goods sold (COGS) = $432,000 • Average accounts receivable = $180,000 Average accounts payable = $36,000 What is the Cash Conversion Cycle?

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

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