Frosty Corporation Has the Following Data,in Thousands

question 12

Multiple Choice

Frosty Corporation has the following data,in thousands.Assuming a 365-day year,what is the firm's cash conversion cycle?
Annual sales =
$45,000
Annual cost of goods sold =
$31,500
Inventory =
$4,000
Accounts receivable =
$2,000
Accounts payable =
$2,400

• A) 25 days
• B) 28 days
• C) 31 days
• D) 35 days
• E) 38 days

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Definitions:

Participates in Management

Involvement in the decision-making processes and operations of an organization or company.

Liability

The state of being responsible for something, especially by law, including debts or legal obligations.

Limited Liability Partnership

A partnership in which some or all partners have limited liabilities, protecting them from personal responsibility for the debts of the business.

Registered

Denotes something that has been officially recorded or listed in a public registry or database, such as a trademark or a company.