What is southern cross cash conversion cycle

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Question - Arkansas Technology Incorporated (ATI) purchases goods from its suppliers on terms of 3/15, net 40. The following information is for Southern Cross Ventures.

Sales (all on credit) $100,000

Cost of Goods Sold 80,000

Accounts receivable 30,000

Inventory 15,000

Accounts Payable 40,000

Required -

a) What is Southern Cross Cash Conversion Cycle?

b) What does your answer about the cash conversion cycle tells you about Southern Cross use or need for cash?

Reference no: EM132791293

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