Salerno Co

question 87

Multiple Choice

Salerno Co. has an inventory turnover rate of 7 and an accounts receivable turnover rate of 5. Assuming 365 days in a year, the period of time required for Salerno to convert its inventory into cash through normal business operations is approximately:

• A) 21 days.
• B) 52 days.
• C) 4 months.
• D) 2.5 months.

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Definitions:

Confidence Interval

A range of values, derived from sample data, within which there's a specified probability that the true parameter value lies.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values.

Standard Error

The standard deviation of the sampling distribution of a statistic, measuring its accuracy as an estimate of the population parameter.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter with a specified level of confidence.