Whittington Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period $= \quad 41$ days
Receivables collection period $= \quad 31$ days
Payables deferral period $=$38 days
A) 31 days
B) 34 days
C) 37 days
D) 41 days
E) 45 days

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as: Inventory conversion period + Receivables collection period - Payables deferral period = 41 + 31 - 38 = 34 days.

Whittington Inc =41= \quad 41=41 Days Receivables Collection Period =31= \quad 31=31

Whittington Inc $= \quad 41$ Days
Receivables Collection Period $= \quad 31$