Question
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
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, what is your estimate of the firm's current cash conversion cycle?
Current inventory = P120,000
Annual Sales = P600,000
Accounts receivable = P157,808
Accounts payable = P25,000
Total annual purchases = P365,000
Purchase credit terms: net 30 days
Receivable credit terms: net 50 days
a. 49 days
b. 193 days
c. 100 days
d. 168 days
e. 144 days
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