The 2015 and 2016 Balance Sheets for Steele Electric Showed

question 144

Multiple Choice

The 2015 and 2016 balance sheets for Steele Electric showed Cash of $6500 and $8000 respectively, Accounts Receivable of $17,000 and $20,000, respectively, Inventory of $12,500 and $9500, respectively, and Accounts Payable of $4700 and $7700, respectively. Its 2016 Income Statement showed Net Sales of $120,000, Cost of Goods Sold of $59,000, and Net Income of $33,000. The cash conversion cycle for 2016 was: (Assume all Sales are credit sales. Round any intermediary calculations to two decimal places and your final answer to the nearest day.)

• A)50 days.
• B)68 days.
• C)86 days.
• D)27 days.

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Definitions:

State Level

Refers to governmental and administrative functions that are conducted at a sub-national level, typically involving state or provincial governments within a country.

Temporary Tax Cut

A reduction in taxation rates or an increase in deductions that is implemented for a limited period of time to stimulate economic growth or provide relief during economic downturns.

Aggregate Demand

The holistic demand encompassing all goods and services in an economy, quantified at a set price level over a fixed time frame.

Permanent Income

The average annual income an individual expects to earn over their lifetime.