Financial Reporting and Analysis Q187
187The following information is available about ABC Company:
| $ Millions | |
| Sales | 2,400 |
| COGS | 1,440 |
| Purchases | 1,470 |
| Average receivables | 312.5 |
| Average inventory | 355 |
| Average payables | 72.5 |
XYZ’s cash conversion cycle (in days) is closest to:
- Option : A
- Explanation : Cash conversion cycle = Days sales outstanding + Days of inventory on hand – Days of payables Cash conversion cycle = 48 + 90 – 18 = 120
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