A Firm Has Days' Sales in Inventory of 105 Days,an

question 41

Essay

A firm has days' sales in inventory of 105 days,an average collection period of 35 days,and takes 42 days,on average,to pay its accounts payable. Taken together,what do these three figures imply about the firm's operations and its cash flows?

---

Definitions:

Global Change

Significant and broad alterations in the Earth's environment, encompassing climate change, biodiversity loss, and shifts in socio-economic factors.

Risk of Maltreatment

Describes the likelihood or potential for individuals, particularly vulnerable populations, to experience abuse, neglect, or exploitation.

Critical Force

Critical Force describes an essential or decisive power, effort, or influence needed to overcome obstacles or enact significant change in a challenging scenario.

Rationalization

A defense mechanism where one justifies actions or feelings with logical reasons, even if these are not the true reasons.