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Cash Conversion Cycle

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Cash Conversion Cycle. Calculate the accounts receivable period, accounts payable period, inventory period, and cash conversion cycle for the following firm:

Income statement data:
Sales 5,000
Cost of goods sold 4,200
Balance sheet data:

Beginning of year End of year
Inventory 500 600
Accounts receivable 100 120
Accounts payable 250 290

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Th solution is in a word document that show step by step how to calculate the Accounts Receivable Period, Accounts Payable Period, Inventory Period, and the Cash Conversion Cycle

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  • BA, Ain Shams University, Cairo Egypt
  • MBA, California State University, Sacramento
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