1. Below is the cash conversion cycle for three companies in the same industry.

					COMPANY
				A		B		C
Average Day Sales Outstanding				30.8		38.9		41.2
Average Days Inventory Outstanding				10.2		62.5		55.6
Average Days Payable Outstanding				62.9		53.3		65.2
Average Cash Conversion Cycle
				(21.9)		48.1		31.6

From this information, we can determine that

a. Company A is able to invest cash it receives from sales for 21.9 days before it has to pay its suppliers.

b. Company B has the best repayment deal with its suppliers because it has the lowest Days Payable Outstanding Ratio.

c. Company A owes its suppliers 21.9 days before it collects on its receivables.

d. Company C is doing the best job of collecting its receivables.