Financial Reporting and Analysis Q193

0. Mary 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?

Answer
Comment
Array

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

Forgot your password?

I agree with the Terms.