Suppose That Professional Photography Has Annual Sales of $900,000, Cost

question 56

Multiple Choice

Suppose that Professional Photography has annual sales of $900,000, cost of goods sold of $450,000, average inventories of $5,000, average accounts receivable of $40,000, and an average accounts payable balance of $20,000. Assuming that all of Professional's sales are on credit, what will be the firm's cash cycle?

• A) 4.06 days
• B) 12.17 days
• C) 18.25 days
• D) 36.50 days

---

Definitions:

Impact Wrench

An air-powered tool for loosening lug nuts and other tight fasteners.

Fillister

A type of screw or bolt with a cylindrical head having a slightly domed top surface.

Machine Screws

Fasteners designed to hold together parts of a machine, having a threaded shaft and typically driven into pre-tapped holes.

Oval

A geometric shape resembling a flattened circle, characterized by having a single continuous line without corners.