Westley Company's Average Age of Accounts Receivable Is 50 Days,the

question 121

Multiple Choice

Westley Company's average age of accounts receivable is 50 days,the average age of accounts payable is 45 days,and the average age of inventory is 72 days.Assuming a 365-day year,what is the length of its cash conversion cycle?

• A)66
• B)69
• C)73
• D)77

---

Definitions:

Euros

The official currency of the eurozone, which is used by 19 of the 27 European Union countries, known as the euro area.

Foreign Exchange Futures

Financial contracts to buy or sell a specified amount of currency at a predetermined price on a set future date, used for hedging or speculating on currency movements.

Foreign Exchange Forward

A financial contract between two parties to buy or sell a particular currency amount at a predetermined future date and price.

Formal

Characterized by adherence to established rules or standards, often relating to official, structured, or systematic processes.