Shulman Inc.has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle? $$\begin{array} { l l }
\text { Angual sales } = & \$ 45,000 \
\text { Annual cost of goads sold } = & \$ 30,000 \
\text { Inventory } = & \$ 4,500 \
\text { Accaunts recervable } = & \$ 1,800 \
\text { Accaunts payable } = & 2,500
\end{array}$$

Question

Shulman Inc.has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle? $$\begin{array} { l l } 
\text { Angual sales } = & \$ 45,000 \
\text { Annual cost of goads sold } = & \$ 30,000 \
\text { Inventory } = & \$ 4,500 \
\text { Accaunts recervable } = & \$ 1,800 \
\text { Accaunts payable } = & 2,500
\end{array}$$

Quizplus · Accepted Answer

$$\begin{array}{l}
\begin{array} { l } 
\text { Annual sales } & \
\text { Annual cost of goods sold (COGS) } & \
\text { Inventory } &\
\text { Accounts receivable } &\
\text { Accounts payable } &\
\text { Days in year } &\
\text { Sales per day = } &\
\text { COGS per day = } &\
\text { Inv. conv. period = Inv./COGS per day }= &\
\text { Avg. coll. period = Receivables/Sales per day }= &\
\text { Pay. def. period = Accounts payable/COGS per day = }
\end{array}
\begin{array} { l } 
\$ 45,000 \
\$ 30,000 \
\$ 4,500 \
\$ 1,800 \
\$ 2,500 \
365\
\$ 123.29 \
\$ 82.19 \
54.75 \
14.60 \
30.42
\end{array}
\end{array}$$
 CCC = Inv.conv.period + Avg.coll.period F1F1F1S1F1F1F10 Pay.def.period = 38.93 days

Shulman Inc A) 28 Days B) 32 Days C) 35 Days D)

Shulman Inc A) 28 Days
B) 32 Days
C) 35 Days
D)