Cash conversion cycle: Your boss asks you to compute your companys cash conversion cycle. Looking at the

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Cash conversion cycle: Your boss asks you to compute your company’s cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was $26,300, accounts receivable averaged $17,900, and accounts payable averaged $15,100.

You also see that the company had sales of $154,000 and that cost of goods sold was $122,000. Calculate and interpret your firm’s cash conversion cycle.

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Fundamentals Of Corporate Finance

ISBN: 9781119795438

5th Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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