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Question :
31) A firm has a cash conversion cycle of 80 : 1415250

31) A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is ________ days.

A) 95

B) 105

C) 60

D) 130

32) 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

C) 75

D) 135

33) A firm has a cash conversion cycle of 120 days, an average collection period of 25 days, and an average payment period of 50 days. The firm's average age of inventory is ________ days.

A) 45

B) 95

C) 125

D) 145

34) A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finished good sold on account 100 days after the raw materials were purchased. The customer paid for the finished good 60 days later. The firm's cash conversion cycle is ________ days.

A) 10

B) 70

C) 130

D) 190

35) The ________ is the time period that elapses from the point when a firm uses the raw materials in manufacturing a finished good to the point when the finished good is sold.

A) cash turnover

B) cash conversion cycle

C) average age of inventory

D) average collection period

36) The ________ is the time period that elapses from the point when a firm sells a finished good on account to the point when the receivable is collected.

A) cash conversion cycle

B) average payment period

C) average age of inventory

D) average collection period

37) A firm has an average age of inventory of 101 days, an average collection period of 49 days, and an average payment period of 60 days. The firm's cash conversion cycle is ________ days.

A) 150

B) 90

C) 109

D) 11

38) A firm can reduce its cash conversion cycle by ________.

A) increasing the average age of inventory

B) increasing the average collection period

C) increasing the operating cycle

D) increasing the average payment period

39) A firm with a cash conversion cycle of 175 days can stretch its average payment period from 30 days to 45 days. This will result in a/an ________.

A) decrease of 30 days in the cash conversion cycle

B) increase of 15 days in the cash conversion cycle

C) decrease of 15 days in the cash conversion cycle

D) increase of 30 days in the cash conversion cycle

40) A firm has an average age of inventory of 20 days, an average collection period of 30 days, and an average payment period of 60 days. The firm's cash conversion cycle is ________ days.

A) 70

B) 50

C) -10

D) 110