Zervos Inc

question 125

Multiple Choice

Zervos Inc.had the following data for last year (in millions) .The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4,000,(2) that improvements in the credit department could reduce receivables by $2,000,and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000.Furthermore,she thinks that these changes would not affect either sales or the costs of goods sold.If these changes were made,by how many days would the cash conversion cycle be lowered?

• A)34.0 days
• B)37.4 days
• C)41.2 days
• D)45.3 days
• E)49.8 days

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Definitions:

Out of Control

A situation or behavior that is not regulated, managed, or within manageable limits.

Cognitive Treatments

Psychological treatments aimed at changing maladaptive thoughts, beliefs, attitudes, and behaviors to relieve symptoms of mental disorders.

Drug Treatments

Therapeutic interventions involving the use of medications to treat diseases, alleviate symptoms, or modify psychological or behavioral conditions.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of acute fear accompanied by physical symptoms.