The 2013 and 2014 Balance Sheets for Shadow Industries Showed

question 17

Multiple Choice

The 2013 and 2014 balance sheets for Shadow Industries showed Cash of $8,000 and $9,500 respectively,Accounts Receivable of $14,000 and $16,000,respectively,Inventory of $11,000 and $8,000,respectively,and Accounts Payable of $5,000 and $7,000,respectively.Its 2014 Income Statement showed Net Sales of $108,000,Cost of Goods Sold of $62,000,and Net Income of $27,000.The cash conversion cycle for 2014 was (round calculations to two decimal places) :

• A)141.94 days.
• B)40.56 days.
• C)30.08 days.
• D)71.30 days.

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Definitions:

Raw Materials Transactions

Financial and operational activities related to the acquisition and use of raw materials in the production process.

November

November, which is the month number eleven in the Gregorian calendar.

Raw Materials Account

An accounting record that tracks the cost of raw materials purchased by a company intended for use in production.

November

The eleventh month of the year in the Gregorian calendar, often associated with fall in the northern hemisphere and spring in the southern hemisphere.