What is the cash-to-cash cycle time if AR_d = 6.5 days, I_d = 22.2 days, and AP_d = 4.2 days? A)32.9 days B)19.9 days C)16.45 months D)24.5 days

Question

Quizplus · Accepted Answer

The cash-to-cash cycle time can be calculated by adding the days of inventory (AR_d) to the days of sales outstanding (I_d) and subtracting the days of payables outstanding (AP_d). Cash-to-cash cycle time = AR_d + I_d - AP_d = 6.5 + 22.2 - 4.2 = 24.5 days Therefore, the best choice is D, as it is the only answer that matches this calculation.

What Is the Cash-To-Cash Cycle Time If ARd = 6

What Is the Cash-To-Cash Cycle Time If AR_d = 6