Enterprise A turns its stocks 8 times a year, pays its debts in 50 days on average and collects its receivables in 85 days on average. What is the cash conversion cycle of the business? (1 year=360 days) a) 90 days b) 70 days c) 75 days d) 80 days e) 85 days

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.