BP has an average age of inventory of 60 70 days, an average collection period of 45 days, and an average payment period of 30 days.Based on this information, BPs cash conversion cycle is ________ days.
A)2515
B)3540
C)4555
D)5585
E)none of the above

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as: Inventory period + Collection period - Payment period. So, 60-70 + 45 - 30 = 75-85 days, which does not match any of the given options.

BP Has an Average Age of Inventory of 60 70