Estimate of the firms current cash conversion cycle

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You have recently been hired to improve the performance of T Corporation which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is your estimate of the firm's current cash conversion cycle? Current inventory = $560,000, Annual sales = $1,100,000 Accounts receivable = $260,000, Accounts payable = $35,000, Total annual purchases = $445,000 Purchases credit terms: net 30 days, Receivables credit terms: net 60 days

Reference no: EM131066414

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