Answer: Cash cycle =24.35 days
Explanation:
Cash cycle=Days in inventory+Days in receivables-Days in payables
Days in inventory=365/inventory turnover
=365/18.9
= 19.3121693 days
Days in receivables=365/receivables turnover
=365/9.7
=37.628866days
Days in payables=365/payables turnover
=365/11.2
=32.5892857 days
Therefore, Cash cycle=Days in inventory+Days in receivables-Days in payables
= 19.3121693 days+ 37.628866 days - -32.5892857days
=24.3517496days
Rounded up to 24.35 days
