Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 12P
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Question
![Use the following data to answer Questions 13 through 19. (Answers may be rounded off.)
Alpha Company
Sales 6000
Cost of goods sold 3500
Average
Inventories
620
Accounts receivable
Working capital. 740
Cash
450
200
Accounts payable 550
Fixed assets
4680
Total assets 5900
Annual purchases 2300
19. Alpha's cash conversion cycle is
a. 35 days
b. 107 days.
c. 46 days
d. 16 days.
I
I](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb502ef85-41e9-403a-865d-ccc6eb209782%2Fd515671d-adce-4046-94b1-0ec36ea8fee1%2Ft2gbc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the following data to answer Questions 13 through 19. (Answers may be rounded off.)
Alpha Company
Sales 6000
Cost of goods sold 3500
Average
Inventories
620
Accounts receivable
Working capital. 740
Cash
450
200
Accounts payable 550
Fixed assets
4680
Total assets 5900
Annual purchases 2300
19. Alpha's cash conversion cycle is
a. 35 days
b. 107 days.
c. 46 days
d. 16 days.
I
I
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