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A growing entity is assessing current working capital requirements. Ana rage of 58 days is required to convert raw materials into finished goods and to sell them. Then an average of 32 days is required to collect on receivables. If the average time the entity takes to pay for its raw materials is 15 days after they are received, the total cash conversion cycle is
A. 11 days.
B. 75 days.
C. 41 days.
D. 90 days.
Answer: B
Explanation:
The cash conversion cycle is the length of time between paying for purchases and receiving cash from the sale of finished is. It equals the inventory conversion period. Plus the receivables collection period, minus the payables deferral period, or 75 days 58 days + 32 days - 15 days). An entity has a current ratio of 1.4. a quick, or acid test, ratio of 1.2.and the following partial summary balance sheet:
NEW QUESTION: 2
A. Option A
B. Option D
C. Option C
D. Option B
Answer: C
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B. A troubleshooting manual
C. An employee handbook
D. An SOP
Answer: B
Explanation:
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C. wireless LAN controller with central WebAuth
D. wired NAD with central WebAuth
Answer: C
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Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48