A Firm Has Annual Operating Outlays of $1,800,000 and a Cash

question 175

Multiple Choice

A firm has annual operating outlays of $1,800,000 and a cash conversion cycle of 60 days. If the firm currently pays 12 percent for financing and reduces its cash conversion cycle to 50 days, the annual savings is ________. (Assume a 365-day year.)

• A) $4,652.19
• B) $3,065.86
• C) $5,917.81
• D) $2,160.23

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Definitions:

Group

A number of individuals who come together or are classified together based on shared characteristics or for a common purpose.

Cognitive Models

Theoretical constructs that explain and predict thinking patterns, decision making, and problem solving in humans.

Changing Thinking

The process of modifying one's thought patterns, often towards more positive or constructive outcomes.

Removing Symptoms

A treatment approach aiming to alleviate or eliminate the physical manifestations of a condition without necessarily addressing the underlying cause.