Q1) You were currently hired as CFO to improve performance of Dennis Systems, that is highly profitable but has been experiencing cash shortages due to its high rate of growth. As one part of analysis, you wish to find out the firm's cash conversion cycle. Using following information and 365-day year, determine your estimate of firm's present cash conversion cycle?
| Average inventory: |
$120,000 |
| Annual sales: |
$600,000 |
| Average accounts receivable: |
$160,000 |
| Average accounts payable: |
$25,000 |
| Total annual purchases: |
$365,000 |
| Buy on net 30 days, no discounts: |
30 |
| Sell on net 50 days, no discounts: |
50 |
a) 118.4
b) 124.6
c) 131.2
d) 138.1
e) 145.3