Romano Inc. has the following data. What is the firm\'s cash conversion cycle? I
ID: 2704919 • Letter: R
Question
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 38 days Average collection period = 19 days Payables deferral period = 20 daysAnswer
33 days
37 days
41 days
45 days
49 days Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 38 days Average collection period = 19 days Payables deferral period = 20 days
Romano Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 38 days Average collection period = 19 days Payables deferral period = 20 days
38 days 19 days 20 days 33 days 37 days 41 days 45 days 49 days Inventory conversion period = 38 days Average collection period = 19 days Payables deferral period = 20 days
Explanation / Answer
cash conversion cycle = Inventory conversion period + Average collection period - Payables deferral period
= 38+19-20 = 37 days
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