Porta Stadium,Inc

question 76

Multiple Choice

Porta Stadium,Inc.has annual sales of $50,000,000.Its cost of goods sold equals 80 percent of sales,and the company keeps $10,000,000 of inventory on hand.On average,the firm has accounts receivable of $7,500,000.The firm buys all raw materials on credit,its trade credit terms are net 30 days,and it pays on time.The firm's managers are searching for ways to shorten the cash conversion cycle.If sales can be maintained at existing levels,but inventory can be lowered by $2,000,000 and accounts receivable lowered by $833,333,what will be the net change in the cash conversion cycle? Use a 360-day year.

• A) +114 days
• B) −114 days
• C) +24 days
• D) −24 days
• E) −90 days

Know the significance of tailoring research presentations to specific audiences.

Understand the concept of common-property resources and their availability.

Differentiate between sustainable and economic development.

Learn about the pace and implication of exponential growth.

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Definitions:

BMWs

are high-performance luxury vehicles manufactured by the German company Bayerische Motoren Werke AG.

Utility Function

A mathematical representation of how a set of goods or outcomes provides satisfaction or utility to an individual.

Reservation Price

The maximum or minimum price a buyer is willing to pay or a seller is willing to accept for a good or service.

BMWs

A brand of luxury vehicles produced by the German company Bayerische Motoren Werke AG, known for high-quality, performance-oriented cars and motorcycles.