Bee's Honey currently has an inventory turnover of 28.6, a payables turnover of 10.8, and a receivables turnover of 14.4.How many days are in 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 as follows:Cash cycle = (Inventory turnover * 365 days) + (Payables turnover * 365 days) - (Receivables turnover * 365 days)In this case, the cash cycle is:Cash cycle = (28.6 * 365 days) + (10.8 * 365 days) - (14.4 * 365 days) = 4.31 daysTherefore, the correct answer is A) 4.31 days.

Bee's Honey Currently Has an Inventory Turnover of 28