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prohojiy [21]
1 year ago
15

Cass & Company has the following data. How many days is the firm's cash conversion cycle? Inventory conversion period = 50 d

ays Average collection period = 17 days Payables deferral period = 25 days
Business
1 answer:
Savatey [412]1 year ago
6 0

Answer:

42 days

Explanation:

Given that

Inventory conversion period = 50 days

Average collection period = 17 days

Payable deferral period = 25 days

Now The computation of the cash conversion cycle is shown below:

The cash conversion cycle = Inventory conversion period + Average collection period  -  Payable deferral period

= 50 days + 17 days - 25 days

= 42 days

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