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Dynasty Furniture sell high end designer furniture. Most of its inventory is sourced from Europe. The company purchases its inventory FOB shipping point and must
Dynasty Furniture sell high end designer furniture. Most of its inventory is sourced from Europe. The company purchases its inventory FOB shipping point and must pay its European suppliers in advance. Once payment is received the inventory is shipped. On average it takes the inventory 8 weeks to arrive. The company's average inventory turnover is 5 times. Most sales are to corporate clients with an average collection period of 45 days. What is Dynasty's cash conversion cycle? A) 45 days B) 56 days C) 91 days D) 174 days
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