Which of the Following Represents the Correct Formula for Calculating

Multiple Choice

Which of the following represents the correct formula for calculating the cash conversion cycle?

A) Days' sales in inventory − Days' payable outstanding.
B) Days' sales in cost of goods sold + Days' sales in inventory − Days' payable outstanding.
C) Days' sales in accounts receivable + Days' sales in inventory − Days' payable outstanding.
D) Days' sales in cost of goods sold − Days' payable outstanding.
E) Days' sales in accounts receivable − Days' payable outstanding.