Cash Conversion Cycle: West Handicrafts Ltd Has Net Sales of $423,000

question 35

Multiple Choice

Cash conversion cycle: West Handicrafts Ltd has net sales of $423,000 with 30 per cent of it being credit sales. Its cost of sales is $324,000. The company's cash conversion cycle is 47.9 days. The company's operating cycle is 86.3 days. What is the company's accounts payable? Round to the nearest dollar

• A) $34,087
• B) $126,900
• C) $71,203
• D) $56,322

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Definitions:

Trough Levels

The lowest concentration of a drug in the bloodstream, typically measured to ensure therapeutic levels are maintained without reaching toxic levels.

Onset of Action

The time it takes after a drug is administered for it to produce its therapeutic effect.

Duration

The length of time that something lasts or continues.

Physiological Response

The natural, biological reactions of the body to internal or external stimuli, such as heart rate increase in response to stress or exercise.