Question 1
A company has an accounts payable period of 58 days, a collection period of 28 days, and a cash conversion cycle of 43 days. Calculate the operating period.
◦ 15
◦ 101
◦ 86
◦ 30
◦ 28
Question 2
All of the following will increase the cash conversion cycle EXCEPT
◦ an increase in accounts receivable.
◦ an increase in inventory.
◦ an increase in costs of goods sold.
◦ an increase in accounts payable.