Skymax has an inventory turnover rate of 11.8, an accounts payable period of 32 days, and...

Skymax has an inventory turnover rate of 11.8, an accounts payable period of 32 days, and an accounts receivable period of 39 days. What is the length of the cash cycle?

		45.68 days
		41.02 days
		37.93 days
		34.29 days
		30.05 days

Expert Solution

Days of inventory on hand= 365/ Inventory turnover

= 365/ 11.8

= 30.93 days

Cash conversion cycle= Days of inventory outstanding + Days of sales outstanding – Days of payables outstanding

= 30.93 + 39 – 32

= 37.93 days.

Hence, the answer is option c.

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jeff jeffy answered 1 year ago

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