A firm purchased raw materials and paid for them after 60 days. The raw materials were used to manufacture a finished good that was sold 30 days after the raw materials were purchased. The customer paid for the finished good 30 days later. What is the firm's cash conversion cycle? a. 120 days b. 30 days c. 0 days d. 60 days
A firm purchased raw materials and paid for them after 60 days. The raw materials were used to manufacture a finished good that was sold 30 days after the raw materials were purchased. The customer paid for the finished good 30 days later. What is the firm's cash conversion cycle? a. 120 days b. 30 days c. 0 days d. 60 days
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Question
![A firm purchased raw materials and paid for them after 60 days. The raw materials were used to
manufacture a finished good that was sold 30 days after the raw materials were purchased. The
customer paid for the finished good 30 days later. What is the firm's cash conversion cycle?
a.
120 days
b. 30 days
c. 0 days
d. 60 days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a162095-9519-4536-a7c2-441626c972ca%2Fd82a9dbc-68e7-49ad-8d7e-b353a54bc98e%2Fx04dbwk_processed.png&w=3840&q=75)
Transcribed Image Text:A firm purchased raw materials and paid for them after 60 days. The raw materials were used to
manufacture a finished good that was sold 30 days after the raw materials were purchased. The
customer paid for the finished good 30 days later. What is the firm's cash conversion cycle?
a.
120 days
b. 30 days
c. 0 days
d. 60 days
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