Whittington Inc

question 77

Multiple Choice

Whittington Inc. has the following data. What is the firm's cash conversion cycle? Inventory conversion period = 41 days
Receivables collection period = 31 days
Payables deferral period = 38 days

• A) 31 days
• B) 34 days
• C) 37 days
• D) 41 days
• E) 45 days

---

Definitions:

Compounded Annually

Interest on an investment or loan that is calculated once a year, adding to the principal sum for the next year.

Present Value

The present-day worth of money to be received in the future or ongoing cash flows, discounted by a specific rate of return.

Single Sum

A lump-sum amount of money taken in a single payment rather than in installments over time.

Owner Control

The extent to which the owners of a business have the power to make decisions and influence the company's operations and strategic direction.