Whaley & Whaley has the following data.What is the firm's cash conversion cycle?
Inventory conversion period =
41 days
Average collection period =
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 can be calculated as Inventory conversion period + Average collection period - Payables deferral period. Plugging in the given values, we get: 41 + 31 - 38 = 34. Therefore, the cash conversion cycle is 34 days.

Whaley & Whaley Has the Following Data