Marshall Inc A) 1206 Days
B) 126

question 44

Multiple Choice

Marshall Inc. recently hired your consulting firm to improve the company's performance. It has been highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle. Using the following information and a 365-day year, what is the firm's present cash conversion cycle?
$\begin{array}{lr}\text { Average inventory }= & \$ 75,000 \\\text { Annual sales }= & \$ 600,000 \\\text { Annual cost of goods sold }= & \$ 360,000 \\\text { Average accounts receivable }= & \$ 160,000 \\\text { Average accounts payable }= & \$ 25,000\end{array}$

• A) 120.6 days
• B) 126.9 days
• C) 133.6 days
• D) 140.6 days
• E) 148.0 days

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Definitions:

Unrelated Phenomena

Events or occurrences that have no direct connection or influence on each other.

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The process of using logical and empirical methods to formulate, test, and modify hypotheses and theories about the natural world.

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Analyzing and drawing conclusions from the similarities and differences among various data points, cases, or situations.

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