Jerome Industries has inventory days of 15,accounts receivable days of 33,and a cash conversion cycle of 41 days.What is its accounts payable days?
A)23 days
B)7 days
C)4 days
D)33 days
E)59 days

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as follows: 
Cash conversion cycle = Inventory days + Accounts receivable days - Accounts payable days 
Given that the inventory days are 15 and the accounts receivable days are 33, we can use the formula to solve for the accounts payable days: 
41 = 15 + 33 - Accounts payable days 
Accounts payable days = 7 
Therefore, the answer is choice B, 7 days.

Jerome Industries Has Inventory Days of 15,accounts Receivable Days of 33,and