Jerome Industries has a cash conversion cycle of 73 days,accounts receivable days of 43,and accounts payable days of 25.What is its inventory days?

Question

Quizplus · Accepted Answer

The cash conversion cycle (CCC) is calculated as the sum of inventory days and accounts receivable days minus accounts payable days. Therefore, inventory days = CCC - accounts receivable days + accounts payable days = 73 - 43 + 25 = 55 days.

Jerome Industries Has a Cash Conversion Cycle of 73 Days,accounts