Question

Hauser Corporation has the following metrics for 2016. Amount in days 2016 Days sales outstanding 36.5 Days payables outstanding 24.8 Days inventory outstanding 59.1 The cash conversion cycle for 2016 is: Select one: A. 2.2 days B. 61.3 days C. 47.4 days D. 70.8 days E. None of the above

Answer 1

Cash conversion cycle of Hauser Corporation is 70.8 Days

Step-by-step explanation:

Cash Conversion cycle = Days sales outstanding + Days inventory outstanding - Days payable outstanding

Cash Conversion cycle = 36.5 Days + 59.1 Days - 24.8 Days

Cash Conversion cycle = 70.8 Days.

The Hauser company takes 70.8 days to convert its inventory into cash.