Between the two companies, which one has the best CCC? Explain why their CCC is stronger than the other one by discussing which components are stronger.

company 1

15+24-9=30 days

1)Average accounts receivable: $40,000

$600,000/15=$40,000

2). Average accounts payable: $12,000

$480,000/40=$12,000

3). Account inventory: $20,000

$480,000/2=$20,000

Company two - Cash Conversion Cycle (CCC) is 52.13 days.

1. Average balances: (double underlined) Inventory = $19,127.10,
2. Accounts Receivable = $18,000, and
3. Accounts Payable = $12,575.35.