What is Ned's cash cycle at the end of the first quarter?

Name: What is Ned's cash cycle at the end of the first quarter?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cash cycle is the time it takes for a company to convert its inventory into cash. Ned's cash cycle at the end of the first quarter is 40 days. This is calculated as follows:Days Sales Outstanding (DSO) = 30 daysInventory Days on Hand (DIO) = 20 daysDays Payable Outstanding (DPO) = 10 daysCash Cycle = DSO + DIO - DPOCash Cycle = 30 days + 20 days - 10 daysCash Cycle = 40 days

What Is Ned's Cash Cycle at the End of the First