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1. Winston Inc. is trying to determine the effect of its inventory turnover ratio and days...

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Finance

1. Winston Inc. is trying to determine the effect of itsinventory turnover ratio and days sales outstanding on its cashconversion cycle. Winston's 2015 sales (all on credit) were$185,000 and its cost of goods sold was 75% of sales. It turnedover its inventory 8.67 times during the year. Its receivablesbalance at the end of the year was $13,192.07 and its payablesbalance at the end of the year was $7,411.93.

Using this information calculate the firm's cash conversioncycle. Round your answer to the nearest whole. Round the daysamounts in your intermediate calculations to the nearest whole day.Do not round other intermediate calculations.
  days?

Answer & Explanation Solved by verified expert
3.9 Ratings (529 Votes)
days of inventory on hand number of days in a yearinventory turnover days of inventory on hand 365867 days of inventory on hand 421 Receivables turnover Credit    See Answer
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1. Winston Inc. is trying to determine the effect of itsinventory turnover ratio and days sales outstanding on its cashconversion cycle. Winston's 2015 sales (all on credit) were$185,000 and its cost of goods sold was 75% of sales. It turnedover its inventory 8.67 times during the year. Its receivablesbalance at the end of the year was $13,192.07 and its payablesbalance at the end of the year was $7,411.93.Using this information calculate the firm's cash conversioncycle. Round your answer to the nearest whole. Round the daysamounts in your intermediate calculations to the nearest whole day.Do not round other intermediate calculations.  days?

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