Jerome industries has inventory days of 48, accounts receivable days of 21, and accounts payable days of 30. what is the length of its cash cycle

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

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.