I'm studying for an exam and this exercise was in it. I don't have the answer and I'm really confused. I don't know if this is simply an example or if I'm supposed to solve it. I've been searching the internet for a way to calculate DPO with only this information but can't find anything. If anyone know what's up?
Calculate the cash conversion cycle
Merrifield Cosmetics calculates that its operating cycle last year was 76 days. The company had 230.000$ in its accounts receivable and sales of 1,92 million. Approximately how many days does it take from the time raw materials are received until the finished products they are used to produce are sold?
Operating cycle
=DSI+DSO =76 days
? DPO?
DSO 43,72396
DSI 32,27604
Calculate the cash conversion cycle
Merrifield Cosmetics calculates that its operating cycle last year was 76 days. The company had 230.000$ in its accounts receivable and sales of 1,92 million. Approximately how many days does it take from the time raw materials are received until the finished products they are used to produce are sold?
Operating cycle
=DSI+DSO =76 days
? DPO?
DSO 43,72396
DSI 32,27604
