QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

45. An analyst gathers the following information about a company:

Cost of goods sold $18.4 million

Average inventory $2.5 million

Receivables turnover 24 times

Number of days of payables 25 days

The company’s cash conversion cycle (in days) is closest to:

A. 40.

B. 59.

C. 65.