Laserscope Has an Inventory Conversion Period of 45 Days, a Receivables

question 48

Multiple Choice

Laserscope has an inventory conversion period of 45 days, a receivables conversion period of 42 days, and a payables deferral period of 51 days.What is the length of its cash conversion cycle?

• A)54 days
• B)36 days
• C)48 days
• D)can determine with more information

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Definitions:

Corporation

A legal entity (or a legal person) created by either a state or federal statute authorizing individuals to operate an enterprise.

Bylaws or Regulations

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Annual Shareholders Meeting

A yearly gathering of the shareholders of a company to discuss its performance, elect the board of directors, and make decisions on other corporate matters.

Operating Agreement

A legal document outlining the governance and operational guidelines of an LLC, including the rights and responsibilities of its members.