Use the Table for the Question(s)below

question 7

Multiple Choice

Use the table for the question(s) below.
Luther Industries had sales of $980 million and a cost of goods sold of $560 million in 2019.A simplified balance sheet for the firm appears below:
Luther Industries
Balance Sheet
As of December 31,2019
(millions of dollars)
-Luther's cash conversion cycle is closest to:

• A)51 days.
• B)66 days.
• C)71 days.
• D)129 days.

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Definitions:

Reciprocal Allocation Method

A method of allocating service costs that explicitly recognizes all interactions among the service departments.

Simultaneous Equations

A set of equations containing multiple variables that are solved together since the solution to one equation depends on the solutions of the others.

Additional Costs

Expenses that are not originally planned or budgeted, arising unexpectedly during the production or execution process.