What is the length of cook company cash conversion cycle

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Reference no: EM132813821

Problem 1: A lock box system for cash collections from customers is most beneficial to firms which

A. make collections from customers over a wide geographic area.

B. have widely dispersed manufacturing facilities.

C. have a large marketable securities account to protect.

D. hold inventories at many different sites.

Problem 2: For Cook Company, the average age of "Accounts Receivable" is 60 days; the average age of "Accounts Payable" is 45 days; and the average age of "Inventory" is 72 days. Assuming a 365-day year, what is the length of Cook Company's "Cash Conversion Cycle?"

A. 87 days.

B. 90 days.

C. 65 days.

D. 48 days.

E. 66 days.

Reference no: EM132813821

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