Your Consulting Firm Was Recently Hired to Improve the Performance

question 61

Multiple Choice

Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc,which is highly profitable but has been experiencing cash shortages due to its high growth rate.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 the firm's present cash conversion cycle?

• A)120.6 days
• B)126.9 days
• C)133.6 days
• D)140.6 days
• E)148.0 days

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Definitions:

Limited Problem Solving

A decision-making process used for purchases that require a moderate amount of deliberation and are typically familiar to the consumer.

Habitual Decision

The process of making choices automatically based on past behaviors and routines without considerable thought.

Purchase Decision

The process that leads a consumer from identifying a need or desire, through information search and evaluation of alternatives, to the buying action.

Information Search

The process individuals engage in to gather relevant information from various sources in order to make informed decisions or solve problems.