12.1

Wolfgangs Masonry management estimates that it takes the company 22 days on average to pay its suppliers. Management also knows that the company has days sales in inventory of 58 days and days sales outstanding of 25 days. How does Wolfgangs cash conversion cycle compare with the industry average of 66 days? Please answer all 3

1) Wolfgangs cash conversion cycle is ________ days.

2) Wolfgangs cash conversion cycle is (greater than | equal to | less than) the industry average.

3) The Firm is (equally efficient | less efficient | more efficient) than other firms in the industry in managing its working capital.