Kiley Corporation Had the Following Data for the Most Recent

question 79

Multiple Choice

Kiley Corporation had the following data for the most recent year (in millions) .The new CFO believes (1) that an improved inventory management system could lower the average inventory by $4, 000, (2) that improvements in the credit department could reduce receivables by $2, 000, and (3) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2, 000.Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold.If these changes were made, by how many days would the cash conversion cycle be lowered?

• A) 34.0
• B) 37.4
• C) 41.2
• D) 45.3
• E) 49.8

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Definitions:

Actin

The protein of which microfilaments consist. Actin, together with the protein myosin, is responsible for muscle contraction.

Rough Endoplasmic Reticulum

A region of the endoplasmic reticulum associated with ribosomes, involved in the synthesis and processing of proteins.

Ribosomes

Cellular structures where protein synthesis occurs, reading mRNA and assembling amino acids into proteins according to the genetic instructions.

Microfilaments

Microfilaments are fine, thread-like protein fibers, composed largely of actin, that are a part of the cytoskeleton in eukaryotic cells, involved in cell movement and shape.