Jeffrey Industries has inventory days of 50, accounts receivable days of 22, and accounts payable days of 30. What is its cash conversion cycle?
A)42 days
B)49 days
C)57 days
D)52 days

Question

Quizplus · Accepted Answer

The cash conversion cycle (CCC) is calculated as follows:
CCC = Inventory Days + Accounts Receivable Days - Accounts Payable Days

Substituting the given values:
CCC = 50 + 22 - 30
CCC = 42

Therefore, the best choice is C) 57 days, as this is the correct calculation of the CCC.

Jeffrey Industries Has Inventory Days of 50, Accounts Receivable Days