answer questions 1, 2, 3

Choose the letter of the correct answer. Write your answers with solutions on the extra sheets provided at the end part of the module. 1. A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is days. a. 15 b. 45 d. 135 c. 75 2. A firm has an average age of inventory of 90 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's operating cycle is days. a. 110 b. 130 c. 120 d. 70 3. A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's average age of inventory is days. c. 90 b. 50 d. 70 a. 80