You Have Recently Been Hired to Improve the Performance of Multiplex

question 59

Multiple Choice

You have recently been hired to improve the performance of Multiplex Corporation which has been experiencing a severe cash shortage.As one part of your analysis,you want to determine the firm's cash conversion cycle.Using the following information and a 360-day year,what is your estimate of the firm's current cash conversion cycle?
Current inventory= $120,000
Annual sales= $600,000
Accounts receivable= $160,000
Accounts payable= $25,000
Total annual purchases= $360,000
Purchases credit terms:net 30 days
Receivables credit terms:net 50 days

• A) 49 days
• B) 143 days
• C) 100 days
• D) 168 days
• E) 191 days

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