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From the following ratios of a company: The cash conversion cycle is closest to: ? No. of days of {(1)Receivables 48 (2)Inventory 37 (3)Payable 28}

<p><strong>A.57 days.</strong></p> <p><strong>B.85 days.</strong></p> <p><strong>C.113 day</strong></p> <p><strong>D.Non of these.</strong></p> <p><strong>E.Please suggest your answer.</strong></p>

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/10/23
Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

A

Muhammad Salman Jahanzeb
by Muhammad Salman Jahanzeb , Assistant Manager Accounts , Prudent Accountants

Answer is A

 

Cash conversion cycle = inventory days + reciveable days - payable days

cash conversion cycle =37 +48 -28 =57 days

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

cash cycle = inventory days + receivable days - payable days 

 

=37 +48 -28 

equal57

answer is A

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Answer a correct answer A

Saleem Khatri
by Saleem Khatri , Head of Finance , Berger Paints International

"a"  should be the answer

 

48 +37 -28 =57

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

A.57 days48+37-28=57

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

A

Cash Conversion Cycle = days inventory outstanding + days sales outstanding - days payable outstanding

mohamed Hakim CMA CPA Candidate
by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

57 days 

 

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