Register now or log in to join your professional community.
Number of days of receivables 48
37 Number of days of inventory
28 Number of days of payables
?The cash conversion cycle for the company is closest to:
A.57 days.
B.85 days.
C.113 days.
Calculate, classify, and interpret activity, liquidity, solvency, profitability and valuation ratios.Evaluate overall working capital effectiveness of a company, using the operating and cash conversion cycles, and compare its effectiveness with other peer companies.The cash conversion cycle = number of days of inventory + number of days of receivables – number of days of payables =48 +37 –28 =57.
A.57 days.
57 days
dddddddddddddddddd
