Question 46 An analyst has recently been hired to improve the performance of SL Energy Corporation, which
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Question:
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 firms 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 firms inventory conversion cycle.
a. 18 days
b. 70 days
c. 75 days
d. 80 days
Question 47
Based on information from Question 46, Calculate the firms receivables collection period.
| 60 days | ||
| 70 days | ||
| 80 days | ||
| 90 days |
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