Financial Reporting and Analysis Q193
193Mary Higgins is a financial analyst. She has the following information available for a leading company in the agricultural sector.
| Days of inventory on hand | 36.48 |
| Days of sales outstanding | 49.22 |
| Payables turnover | 8.99 |
Assume that there are 360 days in a year. What is the cash conversion
cycle for the firm?
cycle for the firm?
- Option : B
- Explanation : Cash Conversion Cycle = DOH + DSO - Number of days of payables Cash Conversion Cycle = 36.48 + 49.22 - (360 / 8.99) = 45.66
