Zervos Inc

question 85

Multiple Choice

Zervos Inc. had the following data for 2011 (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
• B) 37.4
• C) 41.2
• D) 45.3
• E) 49.8

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Definitions:

Supertasters

Individuals who have a heightened sense of taste, often due to a greater number of taste buds on their tongue.

Umami

One of the five basic tastes, recognized for its savory flavor, which is attributed to the presence of glutamate and other amino acids.

Gustatory System

The sensory system responsible for the perception of taste and flavor.

Solitary Tract

A bundle of nerve fibers in the brainstem involved in transmitting sensory information, particularly from the internal organs.