If Swatch's inventory conversion period is 45 days, its payables deferral period is 35 days, and its receivables conversion period is 50 days, then its cash conversion cycle must be ____ days.
A) 60
B) 90
C) 30
D) cannot be determined from the information given

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as the inventory conversion period plus the receivables conversion period minus the payables deferral period. Therefore, it's 45 days + 50 days - 35 days = 60 days.

If Swatch's Inventory Conversion Period Is 45 Days, Its Payables