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Cass & Company has the following data. What is the firm's cash conversion cycle?
Inventory Conversion Period = 47 days
Receivables Collection Period = 17 days
Payables Deferral Period = 25 days
A. 46 days
B. 30 days
C. 45 days
D. 39 days
E. 38 days

Respuesta :

Answer:

D. 39 days

Explanation:

The computation of cash conversion cycle is shown below

As we know that

The cash conversion cycle = Days inventory outstanding + days sale outstanding - days payable outstanding

= 47 days + 17 days - 25 days

= 39 days

We simply applied the above equation so that the cash conversion cycle could be determined