Multiple Select QuestionSelect all that applyDesktop Computer Company would like to calculate their cash conversion cycle. What factors are included in computing this metric?Multiple select question.days' sales in accounts payable (aka days payables outstanding)days' sales in net incomedays' sales in inventorydays' sales in cashdays' sales in accounts receivable
Question
Multiple Select QuestionSelect all that applyDesktop Computer Company would like to calculate their cash conversion cycle. What factors are included in computing this metric?Multiple select question.days' sales in accounts payable (aka days payables outstanding)days' sales in net incomedays' sales in inventorydays' sales in cashdays' sales in accounts receivable
Solution
The factors included in computing the cash conversion cycle for Desktop Computer Company are:
- Days' sales in accounts payable (also known as days payables outstanding)
- Days' sales in inventory
- Days' sales in accounts receivable
Days' sales in net income and days' sales in cash are not typically included in the calculation of the cash conversion cycle.
Similar Questions
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
Multiple Choice QuestionThe cash conversion cycle is computed as:Multiple choice question.days' sales in accounts receivable plus days' sales in inventory minus days' payable outstandingdays' sales in accounts receivable minus days' sales in inventory minus days' payable outstandingdays' sales in accounts receivable minus days' sales in inventory times days' payable outstandingdays' sales in accounts payable plus days' sales in inventory minus days' payable outstanding
Multiple Select QuestionSelect all that applyTo speed up the cash conversion cycle a company can: (Check all that apply).Multiple select question.offer customers more days to payoffer customers fewer days to payadopt lean inventory principlesnegotiate short time to pay suppliersoffer customers a discount for prompt payment
Fill in the Blank QuestionFill in the blank question.A company has days' sales in accounts receivable of 40 days; days' sales in inventory of 55 days, and days' payable outstanding of 30 days. The cash conversion cycle is _.
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)?
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