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c. $288,800
d. $304,000
e. $320,000
4. Your consulting firm was recently hired to improve the performance
of Shin-SoenenInc, 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 firm’s cash conversion cycle. Using the
following information and a 365-day year, what is the firm’s present
cash conversion cycle?
Average inventory = $75,000
Annual sales = $600,000
Annual cost of goods sold = $360,000
Average accounts receivable = $160,000