What Is the Inventory Conversion Period for O'Brian's If It

question 16

Multiple Choice

What is the inventory conversion period for O'Brian's if it has sales of $320,000, an average inventory of $5,333, and a cash conversion cycle of 20 days? Assume that the cost of sales is 55 percent of sales.

• A)6 days
• B)11 days
• C)13.5 days
• D)15 days

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Definitions:

Bell

A bell is a hollow instrument that produces sound when struck, traditionally made of metal and used for signaling, calling, or making music.

Conditioned Response

A response that, through repeated pairings, is evoked by a formerly neutral stimulus.

Unconditioned Response

A naturally occurring response (e.g., salivation).

Operant Conditioning

A process of learning in which a behavior's force is altered through positive reinforcement or penalties.