Question
Alta Custom Inc. has $5 million of inventory and $2 million of accounts receivable. Its average daily GOGS is $109,000 and average dailysales are $120,000.
Alta Custom Inc. has $5 million of inventory and $2 million of accounts receivable. Its average daily GOGS is $109,000 and average dailysales are $120,000. The company's payables deferral period (accounts payable divided by daily purchases) is 30 days. What is their cash conversion cycle?(Hint:You may use the average daily sales to substitute for average daily COGS,when COGS is not given)
a.28.5
b.32.5
c.30
d.26
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Fundamentals Of Multinational Finance
Authors: Michael Moffett, Arthur Stonehill, David Eiteman
6th Edition
0134472136, 978-0134472133
