Suppose That Professional Photography Has Annual Sales of $900,000, Cost

question 56

Multiple Choice

Suppose that Professional Photography has annual sales of $900,000, cost of goods sold of $450,000, average inventories of $5,000, average accounts receivable of $40,000, and an average accounts payable balance of $20,000. Assuming that all of Professional's sales are on credit, what will be the firm's cash cycle?

• A) 4.06 days
• B) 12.17 days
• C) 18.25 days
• D) 36.50 days

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Definitions:

Flexible

Characterized by the ability to easily adapt to new, different, or changing requirements and situations.

Less Bureaucratic

Describes an organization or system that is more flexible and has fewer rigid procedures, rules, and hierarchical levels.

Empowering Leadership

A leadership style that seeks to give employees more autonomy, confidence, and the ability to make their own decisions in their roles.

Flatter Organizations

Organizations with fewer hierarchical levels, promoting faster decision-making, increased responsibility for employees, and often, more open communication paths.