BMC Ltd has an average accounts receivable balance of $1,250,000, an average inventory balance of $1,750,000 and an average accounts payable balance of $800,000. Its annual sales are $12,000,000 and its cost of goods sold represents 80% of annual sales.

Assume there are 365 days in the year. What is BMC's cash conversion cycle?

BMC Ltd has an average accounts receivable balance of $1,250,000, an average inventory balance of $1,750,000 and an average accounts payable balance of $800,000. Its annual sales are $12,000,000 and its cost of goods sold represents 80% of annual sales.

Assume there are 365 days in the year. What is BMC's cash conversion cycle?

60.83 days

72.28 days

100.55 days

74.14days