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GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. What is the length of the company's cash cycle

User EngineerC
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1 Answer

2 votes

Answer: 30.73 days

Step-by-step explanation:

From the question, we are told that GPR, Inc., has an inventory turnover of 18.42 times, a payables turnover of 10.93 times, and a receivables turnover of 8.24 times. The length of the company's cash cycle for thus:

Let's assume that there are 365 days in a year.

The cash cycle will be:

= (365/18.42) + (365/8.24) − (365/10.93)

= 19.82 + 44.3 - 33.39

= 30.73

The length of the company's cash cycle is 30.73 days

User Awaken
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