FMT Trading Inc. has the following financial data: Annual sales 10,000,000 Cost of goods sold 6,000,000 Inventory 2,547,945 Accounts receivable 1,643,836 Accounts payable 1,200,000 a. What is the firm’s cash conversion cycle? b. Provide interpretations of the cash conversion cycle period of the firm.

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Chapter11: The Statement Of Cash Flows
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FMT Trading Inc. has the following financial data:

Annual sales 10,000,000
Cost of goods sold 6,000,000
Inventory 2,547,945
Accounts receivable 1,643,836
Accounts payable 1,200,000

a. What is the firm’s cash conversion cycle?
b. Provide interpretations of the cash conversion cycle period of the firm.

 

 

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