Suppose that the inventory period is 50 days, the accounts receivable period is 40 days, and the accounts payable period is 35 days. What is the cash cycle?

Question

Quizplus · Accepted Answer

The cash cycle is the time it takes for a company to convert its inventory into cash. It is calculated by adding the inventory period, the accounts receivable period, and the accounts payable period. In this case, the cash cycle is 50 + 40 + 35 = 125 days.

Suppose That the Inventory Period Is 50 Days, the Accounts