Zervos Inc

question 63

Multiple Choice

Zervos Inc. had the following data for 2012 (in millions) . The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000, (2) that improvements in the credit department could reduce receivables by $2,000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made, by how many days would the cash conversion cycle be lowered?

• A) 34.0 days
• B) 37.4 days
• C) 41.2 days
• D) 45.3 days
• E) 49.8 days

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Definitions:

DSM-IV

The fourth edition of the Diagnostic and Statistical Manual of Mental Disorders, a manual published by the American Psychiatric Association for diagnosing mental conditions.

DSM-IV

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.

Axis IV

A classification used in previous versions of the Diagnostic and Statistical Manual of Mental Disorders (DSM) to identify psychosocial and environmental problems relevant to the diagnosis, treatment, and prognosis of disorders.

Personality Disorder

A type of mental disorder marked by rigid and unhealthy patterns of thinking, functioning, and behaving, which significantly impair social, work, and interpersonal functioning.