Zervos Inc

question 123

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:

Unpaid Health Care

Refers to health-related services provided by family members, friends, or volunteers rather than by paid healthcare professionals.

Population Growth

An increase in the number of individuals in a population.

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people.

Food Allotments

Portions of land designated for the cultivation of fruit, vegetables, and sometimes livestock, often for personal consumption.