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3 July, 05:57

Cass & Company has the following data. How many days is the firm's cash conversion cycle? Inventory conversion period = 50 days Average collection period = 17 days Payables deferral period = 25 days

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Answers (1)
  1. 3 July, 06:43
    0
    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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