Frosty Corporation Has the Following Data,in Thousands A) 25 Days
B) 28 Days
C) 31 Days
D)

question 13

Multiple Choice

Frosty Corporation has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle? $$\begin{array} { l l } \text { Angual sales } = & \$ 4,000 \\\text { Annual cost of goads sold } = & \$ 31,500 \\\text { Inventory } = & \$ 4,000 \\\text { Accaunts recervable } = & \$ 2,000 \\\text { Accaunts payable } = & 2,400\end{array}$$

• A) 25 days
• B) 28 days
• C) 31 days
• D) 35 days
• E) 38 days

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Definitions:

Allocative Efficiency

A state of the economy where resources are distributed in a way that maximizes the net benefit to society, meaning that goods and services are produced and consumed at quantities where the marginal benefit equals marginal cost.

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition and potentially higher prices for consumers.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market without any close substitutes.

Potential Entry

The possibility or threat of new competitors entering a market, which can influence the behavior and strategies of existing firms.