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A company with a 120-day operating cycle determines its cash conversion cycle using the following data: Receivable days: 35 Inventory days: 95 Payable days: 45 What is the company's cash conversion cycle
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A company with a 120-day operating cycle determines its cash conversion cycle using the following data: Receivable days: 35 Inventory days: 95 Payable days: 45 What is the company's cash conversion cycle

User Jaydeep Vora
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Answer: 85 days

Step-by-step explanation:

The Cash Conversion Cycle is used to estimate the amount of time it takes a firm to convert its inventory into cash.

Formula is;

= Receivable days + Inventory days - Payable days

= 35 + 95 - 45

= 85 days

User Blkpingu
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