Your consulting firm was recently hired to improve the performance of Ali Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firms cash conversion cycle. Using the following information and a 360-day year, what is the firms present cash conversion cycle?

Average inventory = $75,000 Annual sales = $775,000 Annual cost of goods sold = $455,000 Average accounts receivable = $160,000 Average accounts payable = $25,000

Select one:

a. 121.5 days

b. 153.44 days

c. 94.1 days

d. 133.66 days