A Company Has a Collection Period of 37

question 62

Multiple Choice

A company has a collection period of 37.5 days,an inventory period of 93.4 days,and a payables turnover of 48.12.Calculate the cash conversion cycle.

• A) 82.78
• B) 130.9
• C) 123.31
• D) 85.62
• E) 120.31

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Definitions:

Stroboscopic Motion

An optical illusion where discrete images appear to be moving due to rapid sequential presentation, similar to motion pictures.

Milliseconds

Units of time equal to one thousandth (1/1000) of a second, often used to measure very short time intervals.

Vertical Lines

Lines that run straight up and down, creating a sense of height and structure within a visual composition.

Shepard's Table Illusion

A visual illusion where two tables appear to be different shapes but are in fact identical; highlighting how context can influence perception.