question archive Question 46 A business analysis has recently been hired to improve the performance of a firm
Question 46 A business analysis has recently been hired to improve the performance of a firm
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Question 46
A business analysis has recently been hired to improve the performance of a firm. As one part of your analysis, the analyst wants to determine the firm's cash conversion cycle. Using the following information and a 365-day year: Current inventory = $2,000,000; Annual sales = $10,000,000; Accounts receivable = $657,534; Accounts payable = $657,534; Cost of goods sold = $8,000,000. Calculate the firm's inventory conversion cycle.
27 days
73 days
65 days
95 days
Question 47
Based on information from Question 46, Calculate the firm's receivables collection period.
33 days
73 days
70 days
24 days
Question 48
Based on information from Question 46, Calculate the firm's payables deferral period.
30 days
33 days
70 days
24 days
Question 49
Based on information from Question 46~48, Calculate the firm's cash conversion cycle (CCC).
67 days
82 days
36 days
70 days
