Question 1: The strategic plan does NOT identify B. major areas of investment in

ID: 2703270 • Letter: Q

Question

Question 1: The strategic plan does NOT identify

B. major areas of investment in real assets.

C. working capital strategies.

D. the lines of business a firm will compete in.

___________________________________________________

Question 2. You are provided the following working capital information for the Ridge Company:

Ridge Company

Account

Inventory

$12,890

Accounts receivable

12,800

Accounts payable

12,670

Net sales

$124,589

Cost of goods sold

99,630

Cash conversion cycle: What is the cash conversion cycle for Ridge Company?

A. 38.3 days

B. 129.9 days

C. 83.5 days

D. 46.4 days

Hi,

Part A:

Option C is correct.

Part B:

CCC = = 360/(99630/12890) + 360/(124589/12890) - 360/(99630/12670) = 38.04 which is near to 38.30.

Option A (38.30) is the correct answer.

Thanks.

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