The Terowongan Pipe Manufacturing Company has an annual cost of goods sold of $1,095,000 of which $766,500

Fantastic news! We've Found the answer you've been seeking!

Question:

The Terowongan Pipe Manufacturing Company has an annual cost of goods sold of $1,095,000 of which $766,500 represents credit purchases of production inputs. The firm has an average inventory value of $150,000 and its sales are made at a constant rate. It has an average accounts receivable value of $130,000. Its average collection period (ACP) is 23 days, whilst its average payment period (APP) for production inputs bought on credit is 30 days. When answering the following, assume there are 365 days in a year. The firm's cash conversion cycle should approximately be equal to

A. 50 days

B. 73 days

C. 43 days

D. 103 days