Question

What is the cash-to-cash cycle time (in days) based on the given information for the most recent fiscal year?

a) 35 days
b) 20 days
c) 12 days
d) 25 days

Answer 1

The cash-to-cash cycle time is a measure of a company's cash flow efficiency. The given information is insufficient to calculate the cash-to-cash cycle time.

Step-by-step explanation:

The cash-to-cash cycle time is a measure of how long it takes for a company to convert its cash into inventory, sell that inventory, and then collect the cash from the sales. It is a metric used to evaluate the efficiency of a company's cash flow. To calculate the cash-to-cash cycle time, we need the following information:

1. The average number of days it takes for the company to pay its suppliers (payables period)
2. The average number of days it takes for the company to sell its inventory (inventory period)
3. The average number of days it takes for the company to collect cash from its sales (receivables period)

Based on the information provided in the question, it is not possible to determine the cash-to-cash cycle time as the required data is not given.

Therefore, none of the options (a) 35 days, (b) 20 days, (c) 12 days, or (d) 25 days can be selected as the correct answer.