A Firm's Inventory and Accounts Payable Periods Are 80 and 42

question 105

Multiple Choice

A firm's inventory and accounts payable periods are 80 and 42 days,respectively.How long can the firm's receivables period be in order to have no longer than a 65-day cash conversion cycle?

• A) 27 days
• B) 38 days
• C) 57 days
• D) 103 days

---

Definitions:

Distributive Bargaining

A negotiation strategy in which one party’s gain is the other party’s loss, typically involving fixed resources or terms where each party aims to maximize their share.

Attitudinal Structuring

The process of shaping and influencing the perceptions, attitudes, and behaviors of negotiating parties to facilitate agreement.

Employee Stress

The physical and emotional strain experienced by workers due to various factors including workload, work environment, or job insecurity.

High Performance

Achieving significant better outcomes or efficiency in tasks or operations, often exceeding the standard or expected level of productivity.