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21 May, 06:33

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

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Answers (1)
  1. 21 May, 06:57
    0
    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
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