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You Were Recently Hired as CFO to Improve the Performance

question 70

Multiple Choice

You were recently hired as CFO to improve the performance of Dennis Systems,which is highly profitable but has been experiencing cash shortages due to its high rate of growth.As one part of your analysis,you want to determine the firm's cash conversion cycle.Using the following information and a 365-day year,what is your estimate of the firm's present cash conversion cycle? $\begin{array}{lr}\text { Average inventory: } & \$ 120,000 \\\text { Annual sales: } & \$ 600,000 \\\text { Average accounts receivable: } & \$ 160,000 \\\text { Aver age accounts payable: } & \$ 25,000 \\\text { Total annual purchases: } & \$ 365,000 \\\text { Buy on net } 30 \text { days, no discounts: } & 30 \\\text { Sell on net } 50 \text { days, no discounts: } & 50\end{array}$

Describe the process and locations of digestion and absorption in humans.

Explain the roles of enzymes and hormones in the digestive process.

Understand the importance and function of the liver.

Recognize the significance and sources of essential nutrients.

Definitions:

Consumer Surplus

The gap between the aggregate sum consumers are ready and can afford to pay for a good or service and the aggregate sum they actually spend.

Uses of Markets

The functions markets serve in allowing buyers and sellers to exchange goods, services, and information, facilitating the allocation of resources.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price.

Increase in Demand

A situation where more of a good or service is desired by consumers at all price levels, shifting the demand curve rightward.