Picasso's Paints has an inventory turnover of 111 days, an Accounts Payable turnover of 77 days and an Accounts Receivable turnover of 79 days. Picasso's cash conversion cycle is:
A) 113 days.
B) 109 days.
C) 45 days.
D) 2 days.
A) 113 days.
Explanation: days sales in inventory + receivable collection - A/P payment period; ex: 111 + 79 - 77 = 113 days
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