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
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
