Calculate the Cash Conversion and Operating Cycle, Given the Following

question 119

Multiple Choice

Calculate the Cash Conversion and Operating cycle, given the following information:

• A)9.39 days and 82.39 days
• B)15.45 days and 101.52 days
• C)17.67 days and 111.56 days
• D)20.25 days and 115.50 days

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Definitions:

Payment Interval

The interval at which payments are issued, like monthly, every three months, or once a year.

Periodic Interest Rate

The interest rate charged or paid over a particular period of time, often less than a year, such as monthly or quarterly.

Annuity

A monetary product ensuring regular payouts to an individual, commonly incorporated into strategies for retirement.

Payment Interval

The frequency at which payments are made or received, such as monthly, quarterly, or annually.