Inmoo Company's Average Age of Accounts Receivable Is 45 Days

question 28

Multiple Choice

Inmoo Company's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days. Assuming a 365-day year, what is the length of its cash conversion cycle?

• A) 63 days
• B) 67 days
• C) 70 days
• D) 74 days

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Definitions:

Standard Deviation

An indication of how spread out the numbers in a data set are, demonstrating variability from the mean.

Heights of Men

The measurement of how tall male individuals are, often collected for studies in ergonomics, health, or demographic research.

Standard Deviation

A measure of the dispersion or spread of a set of data points relative to its mean, indicating how much variation exists from the average.

Sample Mean

The average of all the observations in a sample.