Direct Furnishings Inc. has the following data:Annual sales $10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000What is the firm’s cash conversion cycle?

Direct Furnishings Inc. has the following data:Annual sales $10,000,000Cost of goods sold 6,000,000Inventory 2,547,945Accounts receivable 1,643,836Accounts payable 1,200,000What is the firm’s cash conversion cycle?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Question

Direct Furnishings Inc. has the following data:
Annual sales $10,000,000
Cost of goods sold 6,000,000
Inventory 2,547,945
Accounts receivable 1,643,836
Accounts payable 1,200,000
What is the firm’s cash conversion cycle?

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