QUESTION 22 Not yet answered Marked out of 2.00 Flag question Question text Pres
ID: 2620638 • Letter: Q
Question
QUESTION 22
Not yet answered
Marked out of 2.00
Flag question
Question text
Prestige Company has determined the following information for its recent fiscal year.
Days inventory outstanding
42.7 days
Days payable outstanding
56.8 days
Days sales outstanding
91.3 days
Compute Prestige Company’s cash conversion cycle.
Select one:
A. 8.2 days
B. 77.2 days
C. 105.4 days
D. 99.5 days
E. None of the above
Days inventory outstanding
42.7 days
Days payable outstanding
56.8 days
Days sales outstanding
91.3 days
Explanation / Answer
Cash Conversion Cycle = Days of Sales Outstanding + Days of Inventory Outstanding - Days of Payables Outstanding = 91.3+42.7-56.8 = 77.2 days
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.