You Were Recently Hired as CFO to Improve the Performance

question 108

Multiple Choice

You were recently hired as CFO to improve the performance of Dennis Systems, which is highly profitable but has been experiencing cash shortages due to its high rate of growth. 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 present cash conversion cycle?

• A) 118.4
• B) 124.6
• C) 131.2
• D) 145.3

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Definitions:

Noxious Gases

Refers to harmful or toxic gases, which can be produced by natural processes such as volcanic eruptions or through human activities.

Volcanic Ash

Particles of volcanic tephra that are sand-sized or smaller, and accumulations of such material.

Geologic Hazards

Natural events caused by geological processes, such as earthquakes, landslides, and volcanic eruptions, that can potentially endanger human lives and property.

Volcanic Eruptions

Explosive events where magma, gas, and ash are expelled from a volcano, often with significant force and impact on the surrounding environment.