Laserscope has an inventory conversion period of 45 days, a receivables conversion period of 42 days, and a payables deferral period of 51 days. What is the length of its cash conversion cycle?
A) 54 days
B) 36 days
C) 48 days
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: 45 + 42 - 51 = 36 days.

Laserscope Has an Inventory Conversion Period of 45 Days, a Receivables