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A company's Cash Conversion Cycle is the length of time (in days) between when the company pays for inventory that it purchases and when it
A company's Cash Conversion Cycle is the length of time (in days) between when the company pays for inventory that it purchases and when it collects cash from a customer from sale of the inventory. Turnova Pic sells solely on credit. How long was the company's Cash Conversion Cycle (Working Capital Gap) in rounded days if its key financial ratios were; Inventory turnover of 3.5; Receivable turnover of 8.7; and Payable turnover of 2.9?
a. 20 days
b. 64 days
c. 23 days
d. 37 days
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