Anderson's Ice Cream Has an Average Collection Period of 49

question 59

Multiple Choice

Anderson's Ice Cream has an average collection period of 49 days, an inventory conversion period of 83 days and a payables deferral period of 36 days.What is Anderson's cash conversion cycle?

• A)96 days
• B)70 days
• C)85 days
• D)132 days

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Definitions:

Soybean Oil

A vegetable oil extracted from the seeds of the soybean, commonly used in cooking and in the production of processed foods.

Margarine

A processed food product made primarily from vegetable oils, used as a butter substitute.

Price Of Gasoline

The cost at which gasoline is sold, determined by various factors including crude oil prices, taxes, demand, and supply conditions.

Demand (D)

A fundamental concept in economics that describes consumers' willingness and ability to purchase goods or services at various prices.