The Bobblehead Company Has an Accounts Receivable Turnover of 36

question 55

Multiple Choice

The Bobblehead Company has an Accounts Receivable turnover of 36 days,an inventory turnover of 77 days and an Accounts Payable turnover of 40 days.Bobblehead's cash conversion cycle is:

• A)153 days.
• B)81 days.
• C)73 days.
• D)1 day.

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Definitions:

Percentage Analysis

A financial analysis technique that involves expressing each item in a financial statement as a percentage of a base amount to assess the financial health and performance of a company.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, usually presented in a structured manner for a specific period.

Return On Total Assets

A profitability ratio that measures the profitability of total assets without considering how the assets are financed, computed as income plus interest expense divided by average total assets.

Profitability

A measure of how effectively a company generates profit from its revenues or assets.