Mark's Manufacturing's Average Age of Accounts Receivable Is 45 Days

question 29

Multiple Choice

Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days.Assuming a 365-day year, what is the length of its cash conversion cycle?

• A) 63 days
• B) 67 days
• C) 70 days
• D) 74 days
• E) 78 days

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Definitions:

Auto-suggestion

A psychological technique involving self-induced suggestions that can influence one's thoughts, behaviors, and perceptions.

Social Concession

An act of yielding or accommodating in social contexts, often to maintain harmony or avoid conflict.

Ideal Self

An individual's conception of how they would like to be, embodying their goals and values.

Denied Self

The aspect of a person's identity that they suppress or reject due to internal conflict or societal pressures.