Laminates Inc

question 72

Multiple Choice

Laminates Inc.has as age of inventory of 43 days,an age of receivables of 47 days and an age of payables of 61 days.Their closest competitor,Natural Inc.,has comparable numbers of 51 days,32 days and 55 days.Which of the following statements is true?

• A)Laminates has the shorter and more desirable working capital gap of 57 days compared to Natural's WCG of 74 days.
• B)Laminates has the longer and less desirable working capital gap of 65 days compared to Natural's WCG of 36 days.
• C)Laminates has the shorter and less desirable working capital gap of 28 days compared to Natural's WCG of 49 days.
• D)Laminates has the longer and less desirable working capital gap of 29 days compared to Natural's WCG of 28 days.

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Definitions:

Frito-Lay's

A subsidiary of PepsiCo that manufactures and sells a wide range of snack foods including chips and crisps.

Licensing

Involves granting permission to an individual or entity to use intellectual property, such as patents, trademarks, or technology, under agreed terms and conditions.

Low-Risk

Pertains to investments or decisions that have a relatively small chance of resulting in financial loss or negative outcomes.

Local Manufacturing

The production of goods within a specific geographic region, typically emphasizing the benefits of reduced transport costs, supporting local economies, and minimizing environmental impact.