Number of days sales in accounts receivable
If a firm's payment terms for sales made on account to its customers were 2/10, n30, the number of days' sales in accounts receivable would be expected to be:
A) less than 10.
B) between 10 and 25.
C) between 25 and 40.
D) over 40.
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What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?
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