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Genovese Fine Foods, a Manufacturer of Foodstuffs, Buys Durham Wheat

Question 1

Multiple Choice

Genovese Fine Foods, a manufacturer of foodstuffs, buys durham wheat flour on credit on June 1. It processes this flour to make pasta on June 6 and pays cash for the flour on June 15. On June 22 it sells the pasta to a chain of supermarkets, and on July 3 receives cash payment for this sale. What is the length of the cash cycle in this case?


A) 8 days
B) 12 days
C) 18 days
D) 28 days

Correct Answer:

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