Using the Information Below, Compute the Cycle Efficiency A) 51 Days

question 18

Multiple Choice

Using the information below, compute the cycle efficiency: $$\begin{array} { l l } \text { Days' sales in accourts receivable } & 15 \text { days } \\\text { Days' sales in irvertory } & 72 \text { days } \\\text { Days' payable outstarding } & 35 \text { days }\end{array}$$

• A) 51 days.
• B) 87 days.
• C) 37 days.
• D) 52 days.
• E) 63 days.

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Definitions:

Company Management

The group of individuals responsible for making major decisions, overseeing operations, and managing the resources and strategy of a company.

Capital Budgeting

The process by which a business evaluates and selects long-term investments based on their potential to generate future profit.

Long-Term Investments

Long-term investments are financial assets intended to be held for a period longer than one year, aiming for higher returns over time.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency.