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15. Calculate the Cash Conversion cycle from the following information. (5 Marks) A company purchasing the raw material from its suppliers and paying the money
15. Calculate the Cash Conversion cycle from the following information. (5 Marks) A company purchasing the raw material from its suppliers and paying the money after 40 days of purchase and the inventory is expected to rest is warehouse for 65 days until the customer make purchase and the average collection period from the customers will be 50 days, when the company can possibly convert the inventory in to cash? Marking Scheme: 2 marks on formula and 3 marks on application of values in to formula and the right answer)
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