Suppose That Jamie's Jams Has Annual Sales of $900,000; Cost

question 17

Multiple Choice

Suppose that Jamie's Jams has annual sales of $900,000; cost of goods sold of $600,000; average inventories of $11,000; average accounts receivable of $50,000; and an average accounts payable balance of $30,000. Assuming that all of Jamie's sales are on credit, what will be the firm's cash cycle?

• A) 45.22
• B) 8.72
• C) 18.25
• D) 26.97

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Definitions:

Recognition Lag

Recognition Lag is the time delay between when an economic problem becomes apparent and when it is recognized by policymakers.

Stimulus Package

A collection of fiscal and monetary policies implemented by a government to stimulate a struggling economy.

Fiscal Policy

Governmental adjustments in spending levels and tax rates aimed at influencing economic activity.

Budget Cycle

The periodic process of planning, creation, execution, and evaluation of a budget, often spanning a fiscal year.