Whittington Inc. has the following data. What is the firm's cash conversion cycle?
A) 31 days
B) 34 days
C) 37 days
D) 41 days
E) 45 days

Name: Whittington Inc. has the following data. What is the firm's cash conversion cycle? A) 31 days B) 34 days C) 37 days D) 41 days E) 45 days
Brand: Quizplus
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Question

Whittington Inc. has the following data. What is the firm's cash conversion cycle? 
A) 31 days 
B) 34 days 
C) 37 days 
D) 41 days 
E) 45 days

Quizplus · Accepted Answer

The cash conversion cycle is calculated as follows: 
Average collection period + Average inventory holding period - Average payment period 
= (60 + 45) - 71 
= 34 days