The formula to calculate the Cash conversion cycle is:

The formula to calculate the Cash conversion cycle is:
A . Cash Conversion Cycle = (Cash conversion period) + (Receivables conversion period) C (Payable deferral period)
B . Cash Conversion Cycle = (Inventory conversion period) + (payables conversion period) C (receivables deferral period)
C . Cash Conversion Cycle = (Receivables conversion period) + (Payable deferral period) – (Inventory conversion period)
D . Cash Conversion Cycle = (Inventory conversion period) + (Receivables conversion period) C (Payable deferral period)

View Answer

Answer: D