Question 46 An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, the analyst wants...


Question 46




An analyst has recently been hired to improve the performance of SL Energy Corporation, which has been experiencing a severe cash shortage.  As one part of your analysis, the analyst wants to determine the firm’s cash conversion cycle.  Using the following information and a 365-day year: Current inventory = $160,000; Annual sales = $1,095,000; Accounts receivable = $180,000; Accounts payable = $36,000; Total annual purchases = $730,000. Calculate the firm’s inventory conversion cycle.




























18 days





70 days





75 days





80 days




Question 47




Based on information from Question 46, Calculate the firm’s receivables collection period.




























60 days





70 days





80 days





90 days




Question 48




Based on information from Question 46, Calculate the firm’s payables deferral period.




























18 days





36 days





75 days





90 days




Question 49




Based on information from Question 46~48, Calculate the firm’s cash conversion cycle (CCC).




























122 days





129 days





147 days





128 days










Jun 10, 2022
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