West Chester Automation Has an Inventory Turnover of 17

question 8

Multiple Choice

West Chester Automation has an inventory turnover of 17.5 and an accounts payable turnover of 11.The accounts receivable period is 36 days.What is the length of the cash cycle?

• A)5.67 days
• B)23.68 days
• C)41.00 days
• D)52.00 days
• E)58.81 days

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, primarily used to fund transportation projects.

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to a change in price, indicating how a product's demand or supply reacts to price changes.

Income Elasticity

A measure of how much the demand for a good is affected by changes in consumers' income.