Question
ABC Exports Ltd. has an annual sale of $22 million, a cost of goods sold of 64% and an average age of inventory equal to
ABC Exports Ltd. has an annual sale of $22 million, a cost of goods sold of 64% and an average age of inventory equal to 56 days. Credit purchases are 62% of cost of goods sold and the company pays its bills in 28 days after the receipt of the purchase. The company's average collection period is 33 days. What is the company's cash conversion cycle?
61 days
89 days
90 days
117 days
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
