Mark's Manufacturing's Average Age of Accounts Receivable Is 45 Days

question 29

Multiple Choice

Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days.Assuming a 365-day year, what is the length of its cash conversion cycle?

• A) 63 days
• B) 67 days
• C) 70 days
• D) 74 days
• E) 78 days

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Definitions:

Midlife

A period in an individual's life, usually ranging from the mid-40s to the mid-60s, characterized by personal, social, and psychological changes.

Pregnancy

The condition or period of being pregnant, where an embryo or fetus develops inside a woman's uterus.

Grandmothers

Female family members who are the mothers of someone's parents, often playing significant roles in family dynamics and child upbringing.

Old Age

A life stage characterized by the advanced age of an individual, often associated with retirement and an increased likelihood of health issues.