Answer:
39 days
Explanation:
Data provided:
Inventory days = 48
Accounts receivable days = 21
Accounts payable days = 30
now,
the length of the cash cycle is calculated as:
= Inventory days + Average collection days - Accounts Payable period
on substituting the respective values, we get
The length of the cash cycle = 48 + 21 - 30
or
The length of the cash cycle = 39 days
