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17.5 End-of-Chapter Problems

PLEASE NOTE: This book is currently in draft form; material is not final.


  1. Calculate Inventory Conversion Period, Receivables Conversion Period, the Payment Conversion Period and the Operating Cycle for Persistence Inc. given the following information. Use 365 to get average:

    Inventory = 150

    COGS = 2200

    A/R = 80

    Revenues = 1460

    Purchases = 2555

    A/P = 100

  2. Calculate the Cash Conversion Cycle for the above data from Persistence Inc. and graph on a timeline.
  3. Can a Cash Conversion Cycle be negative? Why or why not? What does this mean?