Assume that a company has $20 million in revenue and its cost of goods sold is 70% of its sales. Additionally, the firm has $3 million of inventories, $2 million in payables, and $2 million in receivables. What's the firm's cash conversion cycle (CCC)?
CCC= (Days Inv Out+Days sales Out-Days payable out) / (inv/sales)(acct receivable/net credit sales)(accout payable/cost of sales)
Can you provide some guidance?