You Have Recently Been Hired to Improve the Performance of Multiplex

question 141

Multiple Choice

You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. 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 your estimate of the firm's current cash conversion cycle? • Current inventory = $120,000.
• Annual sales = $600,000.
• Accounts receivable = $157,808.
• Accounts payable = $25,000.
• Total annual purchases = $365,000.
• Purchases credit terms: net 30 days.
• Receivables credit terms: net 50 days.

• A) 49 days
• B) 193 days
• C) 100 days
• D) 168 days
• E) 144 days

---

Definitions:

Birth Year

The calendar year in which a person was born, used as an identifying measure in demographic studies.

Prescriptive Analytics

The aspect of business analytics dedicated to finding the best course of action for a given situation.

Best Course

Refers to the most appropriate or effective path of action or study plan, often determined through assessment and analysis.

Action

The process of doing something with the intent to achieve an aim or handle a problem, often requiring decision-making and execution.