Fill in the Blank QuestionFill in the blank question.The _ conversion cycle measures the average time it takes to convert cash outflows into cash inflows.
Question
Fill in the Blank QuestionFill in the blank question.The _ conversion cycle measures the average time it takes to convert cash outflows into cash inflows.
Solution
The "operating" conversion cycle measures the average time it takes to convert cash outflows into cash inflows.
Similar Questions
What is the correct formula for Cash Conversion Cycle?
Question 8Tips2 ptsAn analyst gathers the following data for a firm:Sales: $2,500Cost of Goods Sold: $720Interest Paid: $26Net Income: $102Total Assets: $106,500Equity: $56,225Inventory: $180Accounts Receivables: $108Accounts Payables: $142Based on this information, what is the firm's Operating Cash Conversion Cycle (in days)?
Desktop Computer Company would like to calculate their cash conversion cycle. What factors are included in computing this metric?Multiple select question.days' sales in cashdays' sales in accounts payable (aka days payables outstanding)days' sales in net incomedays' sales in accounts receivabledays' sales in inventory
Fill in the Blank QuestionFill in the blank question.A company has days' sales in accounts receivable of 25 days; days' sales in inventory of 45 days, and days' payable outstanding of 50 days. The cash conversion cycle is _.
Fill in the Blank QuestionFill in the blank question.If the cash conversion cycle is too long, companies do not have use of that money and risk missing _ opportunities.
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