Calculate the Inventory-To-Sale Conversion Period Based on the Following Information

question 7

Multiple Choice

Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000.

• A)240 days
• B)180 days
• C)90 days
• D)60 days

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Definitions:

Reciprocal Determinism

A concept in psychology that suggests an individual's behavior is both influenced by and influences their personal factors and the environment.

Social-Cognitive Interaction

The process by which individuals understand and respond to the thoughts, feelings, and behaviors of others, influenced by the social context and cognitive processes.

Nature-Nurture Theory

A theoretical framework that debates the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative disposition.