Use the following firm working capital cycle information for questions
$\begin{array}{ll}
\text { Days accruals}&11 \
\text {Days cash }& 5\
\text {Days inventory }& 29\
\text {Days accounts payables }& 19\
\text {Days accounts receivables }&31 \
\
\text { Average Daily COGS }&\$18
\end{array}$

-What is the firm's cash-to-cash asset cycle?
A) 30 days
B) 59 days
C) 65 days
D) 95 days
E) 113 days

Question

Use the following firm working capital cycle information for questions 
 $\begin{array}{ll}
\text { Days accruals}&11 \
\text {Days cash }& 5\
\text {Days inventory }& 29\
\text {Days accounts payables }& 19\
\text {Days accounts receivables }&31 \
\
\text { Average Daily COGS }&\$18
\end{array}$

-What is the firm's cash-to-cash asset cycle?
A) 30 days
B) 59 days
C) 65 days
D) 95 days
E) 113 days

Quizplus · Accepted Answer

The cash-to-cash asset cycle is calculated as Days Inventory + Days Accounts Receivables - Days Accounts Payables = 29 + 31 - 19 = 41 days.

Use the Following Firm Working Capital Cycle Information for Questions