Gencom International has inventory days of 22,and accounts payable days of 37.If its cash conversion cycle is 28 days,what is Gencom's accounts receivable days?
A)43 days
B)31 days
C)13 days
D)87 days
E)29 days

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as Inventory Days + Accounts Receivable Days - Accounts Payable Days. Given that Gencom's cash conversion cycle is 28 days, its inventory days are 22, and its accounts payable days are 37, we can set up the equation: 28 = 22 + Accounts Receivable Days - 37. Solving for Accounts Receivable Days gives us 43 days.

Gencom International Has Inventory Days of 22,and Accounts Payable Days