Zervos Inc

question 32

Multiple Choice

Zervos Inc. had the following data for 2008 (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:

Informal Communication Network

The unofficial channels of communication within an organization, often known as the grapevine, which can spread information quickly but sometimes inaccurately.

Voice

The expression of opinions, concerns, or suggestions, particularly in a context where such input is solicited to encourage participation or improvement.

Forms

Refers to types or variations of something, often used in administrative, survey, or data collection contexts.

Organizations

Entities, often comprising groups of people, structured to achieve particular goals or perform specific functions.