Calculate the Cash Conversion and Operating Cycle, Given the Following

question 36

Multiple Choice

Calculate the Cash Conversion and Operating cycle, given the following information: $$\begin{array} { | l | c | } \hline \text { Data: } & \\\hline \text { Average Inventory } & 840.00 \\\hline \text { Average AR } & 600.00 \\\hline \text { Average AP } & 1,200.00 \\\hline \text { sales } & 7,000.00 \\\hline \text { COGB } & 6,000.00 \\\hline\end{array}$$

• A)9.39 days and 82.39 days
• B)15.45 days and 101.52 days
• C)17.67 days and 111.56 days
• D)20.25 days and 115.50 days

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Definitions:

Plasma Membrane

The lipid bilayer that encloses the cytoplasm of a cell, controlling the movement of substances in and out of the cell.

Endoplasmic Reticulum

A network of membranous tubules within the cytoplasm of a cell, involved in protein and lipid synthesis, and detoxification processes.

Mitochondrion

An organelle found in large numbers in most cells, where the biochemical processes of respiration and energy production occur.

DNA Replication

The process by which a cell duplicates its DNA, producing two identical copies prior to division.