To answer this question, we need to understand the concept of the cash conversion cycle (CCC). The CCC measures the time it takes for a company to convert its resources into cash flow. It is calculated by adding the number of days of inventory and the number of days of receivables and subtracting the number of days of payables.
Given:
Number of days of receivables: 48
Number of days of inventory: 37
Number of days of payables: 28
To calculate the cash conversion cycle (CCC), we use the following formula:
CCC = Number of days of inventory + Number of days of receivables - Number of days of payables
Substituting the given values, we get:
CCC = 37 + 48 - 28
CCC = 57
Therefore, the cash conversion cycle for the company is closest to 57 days.
The correct answer is A.