You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm$$s cash conversion cycle. Using the following information and a $365-$day year,

$($a$)$ what is your estimate of the firm$$s current cash conversion cycle?

$$ Current inventory $=$

$ $191,000\mathrm{.}00$

$$ Annual sales $=$

$ $750,000\mathrm{.}00$

$$ Accounts receivable $=$

$ $165,000\mathrm{.}00$

$$ Accounts payable $=$

$ $95,000\mathrm{.}00$

$$ Total annual purchases $=$

$ $576,000\mathrm{.}00$

$$ Purchases credit terms: net $30$ days.

$$ Receivables credit terms: net $50$ days.

Question $13$Answer

a$.$

$141$ days

b$.$

$202$ days

c$.$

$262$ days

d$.$

$147$ days