Casie Company turns out 200 calculators a day at a cost of P250 per calculator for materials and variable conversion cost. It takes the firm 18 days to convert raw materials into calculator. Casie's usual credit terms extended to its customers is 30 days, and the firm generally pays its suppliers in 20 days.

If the foregoing cycles are constant, what amount of working capital must Casie Company finance?

A. P1,400,000 C. P 900,000

B. P2,400,000 D. P1,800,000

2. Luke Company has an inventory conversion period of 60 days, a receivables conversion period of 45 days, and a payments cycle of 30 days. What is the length of the firm's cash conversion cycle?

A. 90 days C. 54 days

B. 75 days D. 105 days

3. The Spades Company has an inventory conversion period of 75 days, a receivables conversion period of 38 days, and a payable payment period of 30 days. What is the length of the firm's cash conversion cycle?

A. 83 days C. 67 days

B. 113 days D. 45 days

4. Samaritan Supplies, Inc. has P5 million in inventory and P2 million in accounts receivable. Its average daily sales are P100,000. The company has P1.5 million in accounts payable. Its average daily purchases are P50,000. What is the length of the company's cash conversion period?

A. 50 days C. 30 days

B. 20 days D. 40 days

5. What is the inventory period for a firm with an annual cost of goods sold of P8 million, P1.5 million in average inventory, and a cash conversion cycle of 75 days?

A. 6.56 days C. 52.60 days

B. 18.75 days D. 67.50 days

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