Logan Manufacturing currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 50 days. It wants to reduce its DSO to the industry average of 30 days by pressuring customers to pay on time. The Chief Financial Officer (CFO) estimates that average sales will fall by 10% if the policy is adopted. Assuming the firms achieves the DSO of 30 days and suffers the 10% sales decline, what will be the new level of accounts receivable? Assume 1 year =365 days

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Q: cash conversion cycle

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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.