Clark Corporation has an average collection period of 7 days, an inventory conversion period of 30 days, and a payables deferrable period of 60 days. What is Clark’s cash conversion cycle? A) 97 days B) 37 days C) 23 days D) -23 days

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Clark Corporation has an average collection period of 7 days, an inventory conversion period of 30 days, and a payables deferrable period of 60 days. What is Clark’s cash conversion cycle?
A) 97 days
B) 37 days
C) 23 days
D) -23 days
Darshita Changed status to publish August 12, 2020
0

Answer:

Clark’s conversion cycle

operating cycle

= Account recivable period + Inventory period – payables deferrable period

=30 + 7 -60

=-23

Clark’s conversion cycle = -23 days

Darshita Changed status to publish August 12, 2020

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