Using the Information Provided,what Is the Length of the Production

question 63

Multiple Choice

Using the information provided,what is the length of the production cycle for the firm? Perfect Purchase Electronics
Selected Income Statement Items,2014
Cash Sales $1,500,000
Credit Sales $7,500,000
Total Sales $9,000,000
COGS $6,000,000
Perfect Purchase Electronics
Selected Balance Sheet Accounts
12/31/2014 12/31/2013 Change
Accounts Receivable $270,000 $240,000 $30,000
Inventory $125,000 $100,000 $25,000
Accounts Payable $110,000 $90,000 $20,000

• A)6.08 days
• B)7.60 days
• C)53.33 days
• D)6.84 days

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Definitions:

Psychoactive Drugs

Substances that affect the mind, mood, or behavior by altering the brain's chemical function.

Narcotics

Drugs that relieve pain and often induce sleep, typically used for pain relief but have a high potential for abuse or addiction.

Rapid Development

The process of quickly bringing a new product or technology to the market or achieving progress in a short amount of time.

Tolerance

Tolerance is the capacity to endure pain or hardship, or in pharmacology, it refers to the body's adaptation to a drug which reduces its effects over time.