Homework SourseHauser Corporation has the following metrics for 2016 2016 3
Hauser Corporation has the following metrics for 2016.
2016
36.5
24.8
Days inventory outstanding
59.1
The cash conversion cycle for 2016 is:
Select one:
Select one:
a. 47.4 days
b. 70.8 days
c. 61.3 days
d. 2.2 days
e. None of the above
| Amount in days | 2016 |
| Days sales outstanding | 36.5 |
| Days payables outstanding | 24.8 |
| Days inventory outstanding | 59.1 |
Solution
cash conversion cycle for 2016=Days sales outstanding+Days inventory outstanding-Days payables outstanding
(36.5+59.1-24.8)days
which is equal to
=70.8 days.
