Estimate payables deferral period cash conversion cycle


The Mennen Corporation is interested in examining its cash conversion cycle. Suppose a Mennen manager has assembled the following data for your use: $1.20 million Inventory $0.96 million Accounts receivable $0.48 million Accounts payable $0.18 million Wages, benefits, and payroll taxes payable $30.0 million Sales $12.0 million Cost of sales $1.80 million Selling, general, and administrative expenses Estimate each of the following:

a. Inventory conversion period
b. Receivables collection period
c. Payables deferral period
d. Cash conversion cycle.

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Financial Accounting: Estimate payables deferral period cash conversion cycle
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