Cyree IncHas Annual Sales of $80,000,000,its Average Inventory Is $20,000,000,and Its

question 111

Multiple Choice

Cyree Inc.has annual sales of $80,000,000,its average inventory is $20,000,000,and its average accounts receivable is $16,000,000.The firm buys all raw materials on terms of net 35 days,and it pays on time.The firm is searching for ways to shorten the cash conversion cycle.If sales can be maintained at existing levels while lowering inventory by $4,000,000 and accounts receivable by $2,000,000,by how many days would the cash conversion cycle be changed? Use a 365-day year.

• A)-27.4
• B)-28.7
• C)-30.2
• D)-31.7

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Definitions:

Market Demand Curve

A graphical representation showing the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Goods

Tangible items that are produced for sale or use, often categorized as consumer or industrial goods.

Quantity Demanded

The total amount of a goods or services that consumers are willing and able to purchase at a given price level at a specific time.