1) You have just been hired to develop performance of Multiplex Corporation that has been experiencing severe cash shortage. As part of the analysis, you want to find out firm's cash conversion cycle. By using following information and 360-day year, what is your approximate of firm's present cash conversion cycle?
Current inventory=$120,000
Annual sales=$600,000
Accounts receivable=$160,000
Accounts payable= $25,000
Total annual purchases= $360,000
Purchases credit terms: net 30 days
Receivables credit terms: net 50 days