Jerome Industries has inventory days of 31,accounts payable days of 28,and a cash conversion cycle of 56 days.What is its accounts receivable days?
A)28 days
B)25 days
C)56 days
D)53 days
E)59 days

Question

Quizplus · Accepted Answer

Accounts receivable days can be calculated using the cash conversion cycle formula: 
Cash conversion cycle = inventory days + accounts receivable days – accounts payable days

Rearranging the formula, we get: 
Accounts receivable days = cash conversion cycle – inventory days + accounts payable days

Substituting the given values in the formula: 
Accounts receivable days = 56 – 31 + 28 = 53 days

Therefore, the correct answer is D.

Jerome Industries Has Inventory Days of 31,accounts Payable Days of 28,and