Mark's Manufacturing's Average Age of Accounts Receivable Is 45 Days

question 13

Multiple Choice

Mark's Manufacturing's average age of accounts receivable is 45 days, the average age of accounts payable is 40 days, and the average age of inventory is 69 days.Assuming a 365-day year, what is the length of its cash conversion cycle?

• A) 63 days
• B) 67 days
• C) 70 days
• D) 74 days
• E) 78 days

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Definitions:

Nail Plate

The hard, protective, translucent part of the nail composed of keratin, covering the nail bed and forming the visible nail.

Epidermis

The outermost layer of the skin that acts as a barrier against environmental damage and pathogens.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and connective tissue.

Stratum Basale

The deepest layer of the epidermis, consisting of basal cells that continuously divide and produce new skin cells.