Soenen Inc

question 35

Multiple Choice

Soenen Inc.had the following data for last year (in millions) .The new CFO believes that the company could improve its working capital management sufficiently to bring its net working capital and cash conversion cycle up to the benchmark companies' level without affecting either sales or the costs of goods sold.Soenen finances its net working capital with a bank loan at an 8% annual interest rate,and it uses a 365-day year.If these changes had been made,by how much would the firm's pre-tax income have increased? ​

• A) $1,467
• B) $1,906
• C) $1,810
• D) $2,058
• E) $1,849

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Definitions:

Deindividuation

A psychological state characterized by reduced self-awareness and diminished social identity, often leading to disinhibited and impulsive behavior.

Diffusion of Responsibility

A psychological phenomenon where individuals are less likely to take action or feel a sense of responsibility in the presence of a large group of people.

Just-World Hypothesis

The cognitive bias that a person's actions are inherently inclined to bring morally fair and fitting consequences to that person.

Ethnocentrism

The belief that one’s own ethnic group, nation, or religion is superior to all others.