Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is:

Question

Quizplus · Accepted Answer

The cash conversion cycle (CCC) is calculated as the inventory turnover days plus the accounts receivable turnover days minus the accounts payable turnover days. For Ryan Industries, this is 112 days (inventory turnover) + 82 days (accounts receivable turnover) - 73 days (accounts payable turnover) = 121 days.

Ryan Industries Has an Inventory Turnover of 112 Days, an Accounts