1. Which one of these statements concerning the cash conversion cycle is correct?
A. The cash conversion cycle plus the accounts receivable period equals the operating cycle.
B. The cash conversion cycle is equal to the operating cycle minus the inventory conversion period.
C. The most desirable cash conversion cycle is the one that equals zero days.
D. Granting credit to slower paying customers tends to decrease the cash conversion cycle.
E. A negative cash conversion cycle is actually preferable to a positive cash conversion cycle.
2. In 1898, the first Green Jacket Golf Championship was held. The winner’s prize money was $180. In 2015, the winner’s check was $1,520,000. What was the annual percentage increase in the winner’s check over this period?
Annual percentage %
If the winner’s prize increases at the same rate, what will it be in 2042.
Prize money $