Ask Question
20 September, 18:04

Cass & Company has the following data. What is the firm's cash conversion cycle?

Inventory Conversion Period = 47 days

Receivables Collection Period = 17 days

Payables Deferral Period = 25 days

A. 46 days

B. 30 days

C. 45 days

D. 39 days

E. 38 days

+3
Answers (1)
  1. 20 September, 18:31
    0
    D. 39 days

    Explanation:

    The computation of cash conversion cycle is shown below

    As we know that

    The cash conversion cycle = Days inventory outstanding + days sale outstanding - days payable outstanding

    = 47 days + 17 days - 25 days

    = 39 days

    We simply applied the above equation so that the cash conversion cycle could be determined
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Cass & Company has the following data. What is the firm's cash conversion cycle? Inventory Conversion Period = 47 days Receivables ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers