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Macrae Products, a Manufacturer of Building Products, Buys Raw Gypsum

Question 2

Multiple Choice

Macrae Products, a manufacturer of building products, buys raw gypsum on credit on 16 May. It processes this gypsum to make dry plaster powder on 20 May and pays cash for the raw gypsum on 30 May. On 7 June it sells the dry plaster powder to a chain of hardware stores, and on 21 June receives cash payment for this sale. What is the length of the cash cycle in this case?


A) 23 days
B) 22 days
C) 8 days
D) 14 days

Correct Answer:

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