Your Consulting Firm Was Recently Hired to Improve the Performance

question 34

Multiple Choice

Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle?

• A) 120.6 days
• B) 126.9 days
• C) 133.6 days
• D) 140.6 days
• E) 148.0 days

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Definitions:

Filter Feeders

Aquatic animals that feed by straining suspended matter and food particles from water.

Omnivores

Organisms that consume both plant and animal matter as part of their diet.

Gastric Glands

Glands in the wall of the stomach; contain cells that secrete hydrochloric acid, intrinsic factor, and pepsinogen, the precursor of the enzyme pepsin.

Parietal Cells

Cells in the lining of the stomach that produce hydrochloric acid and intrinsic factor, crucial for digestion and B12 absorption.