Calculate the firms cash conversion cycle

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Reference no: EM131067401

Canadian Products is concerned about managing its operating assets and liabilities efficiently. Inventories have an average age of 140 days, and accounts receivable have an average age of 70 days. Accounts payable are paid approximately 40 days after they arise. The firm has annual sales of $36 million, its cost of goods sold represents 75% of sales, and its purchases represent 70% of cost of goods sold. Assume a 365-day year.

Calculate the firm's operating cycle.

____ days

Calculate the firm's cash conversion cycle.

___ days

Calculate the amount of total resources Canadian Products has invested in its CCC. Round your answer to the nearest dollar.

$ ____

Reference no: EM131067401

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