Problem
Data of Westfield Goods Inc. for the most recent year is shown below. The firm's new CFO believes that the company could reduce its receivables by $25,000 to reduce its DSO to the industry average level. If this were done without impacting sales, what would be the Cash Conversion Cycle after the change? Use a 365-day year.
Sales $610,500
Accounts receivable $78,000
Annual COGS $450,000
Average Inventory $69,500
Accounts Payable 67,000