What is the cash conversion cycle for a firm
with a receivable period is 45 days, a payables
period of 50 days and an inventory period of
65 days?
(d) 60 days
(c) 45 days
(a) 30 days
(b) 35 days
Answers
Answered by
1
Answer:
60 day is the write answer
Answered by
0
Answer:
CCC = 60
Explanation:
Among the various options given in question statement, the correct option is D i.e 60 days.
The formula that is used to calculate the cash conversion cylce can be mathematically written as
Cash conversion cycle = Days of Sales Outstanding + Days of Inventory Outstanding - Days of Payables Outstanding.
Now putting the given values in above formula,
CCC = 45 + 65 - 50
CCC = 60
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