The cash conversion cycle of the company


1. The following information relates to Dane Corporation.

Inventory conversion period                         55.8 days

Days sales outstanding                                23.9 days

Days payables outstanding                          32.5 days

The cash conversion cycle of the company is:?

a. ?47.2 days.

b. ?64.4 days.

c. ?56.4 days.

d. ?79.7 days.

e. ?112.2 days.

2. Which of the following types of inventory financing is generally used when the inventory put up as collateral is relatively low priced, fast moving, and difficult to identify individually??

a. ?Warehouse receipt

b. ?Factoring

c. ?Trust receipts

d. ?Blanket liens

e. ?Recourse

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Financial Management: The cash conversion cycle of the company
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