Gencom International has inventory days of 12,and accounts receivable days of 33.If its cash conversion cycle is 21 days,what is Gencom's accounts payable days?
A)0 days
B)30 days
C)12 days
D)66 days
E)24 days

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as Inventory Days + Accounts Receivable Days - Accounts Payable Days. Given that the cash conversion cycle is 21 days, Inventory Days are 12, and Accounts Receivable Days are 33, we can set up the equation: 12 + 33 - Accounts Payable Days = 21. Solving for Accounts Payable Days gives us 24 days.

Gencom International Has Inventory Days of 12,and Accounts Receivable Days