Frosty Corporation has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle? $$\begin{array} { l l }
\text { Angual sales } = & \$ 4,000 \
\text { Annual cost of goads sold } = & \$ 31,500 \
\text { Inventory } = & \$ 4,000 \
\text { Accaunts recervable } = & \$ 2,000 \
\text { Accaunts payable } = & 2,400
\end{array}$$

Question

Frosty Corporation has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle? $$\begin{array} { l l } 
\text { Angual sales } = & \$ 4,000 \
\text { Annual cost of goads sold } = & \$ 31,500 \
\text { Inventory } = & \$ 4,000 \
\text { Accaunts recervable } = & \$ 2,000 \
\text { Accaunts payable } = & 2,400
\end{array}$$

Quizplus · Accepted Answer

$$\begin{array}{l}
\begin{array} { l } 
\text { Annual sales }  & \$ 45,000\
\text { Annual cost of goods sold (COGS) } & \$ 31,500\
\text { Inventory } & \$ 4,000\
\text { Accounts receivable } &\$2,000\
\text { Accounts payable } &\$2,400\
\text { Days in year } & 365\
\text { Sales per day = } &\$ 123.29\
\text { COGS per day = }& \$ 86.30\
\text { Inv. conv. period = Inv./COGS per day }=&46.35 \
\text { Avg. coll. period = Receivables/Sales per day }=&16.22 \
\text { Pay. def. period = Accounts payable/COGS per day = $ \quad $$ \quad $$ \quad $ $ \quad $27.81}
\end{array}
\end{array}$$
 CCC = Inv.conv.period + Avg.coll.period F1F1F1S1F1F1F10 Pay.def.period = 34.76 days

Frosty Corporation Has the Following Data,in Thousands A) 25 Days B) 28 Days C) 31 Days D)

Frosty Corporation Has the Following Data,in Thousands A) 25 Days
B) 28 Days
C) 31 Days
D)