Annual cost of goods sold


What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million?

A) 14.59 days

B) 46.25 days

C) 70.41 days

D) 136.25 days

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Accounting Basics: Annual cost of goods sold
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