Question
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2017 sales (all on credit) were $187,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.04 times during the year. Its receivables balance at the end of the year was $13,164 and its payables balance at the end of the year was $7,390.45. Using this information calculate the firm's cash conversion cycle. Assume a 365-day year. Do not round intermediate calculations. Round your answer to one decimal place.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started