Zervos Inc

question 39

Multiple Choice

Zervos Inc.had the following data for last 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? Do not round your intermediate calculations. ​

• A) 37.41 days
• B) 28.57 days
• C) 37.75 days
• D) 34.01 days
• E) 25.51 days

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Definitions:

Learning Organisation

An organization that promotes a culture of continuous learning, adaptability, and innovation among its employees and processes.

Global Awareness

The recognition and understanding of worldwide cultural differences, international events, and global economic, environmental, and political issues.

Economic Development

The process through which a region improves the economic well-being and quality of life for its inhabitants.

Bureaucratic Organisation

A formal organizational structure defined by clear hierarchical levels, fixed roles, and a focus on rules and procedures.