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:

Net Profit

The amount of money that remains from revenues after accounting for all costs and expenses, indicating the financial profitability of a business.

Cumulative

Pertaining to a total that increases gradually by successive additions.

Fifth Year

Referring to the fifth year in a specific time frame or plan, often used in the context of education, projects, or strategic plans.

Annual Cost

The total cost incurred by an entity over a one-year period, encompassing both fixed and variable expenses.