A Firm Has a Cash Conversion Cycle of 60 Days

question 130

Multiple Choice

A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of financing is 12 percent. If the firm reduces its average age of inventory by 10 days, the annual savings is ________. (Assume a 365-day year.)

• A) $10,400
• B) $14,000
• C) $28,800
• D) $39,452

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Definitions:

REM Sleep

stands for Rapid Eye Movement sleep, a phase of sleep during which vivid dreams commonly occur, characterized by rapid movement of the eyes.

Memory

The capacity of the mind to store, retain, and recall information, experiences, and skills.

Sleep Apnea

A disorder characterized by pauses in breathing or instances of shallow or infrequent breathing during sleep.

Periodic Limb Movement Disorder

A sleep disorder characterized by repeated movements of the limbs during sleep, often leading to disrupted sleep and daytime fatigue.