Frosty Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?
Annual sales =$45,000
Annual cost of goods sold =$31,500
Inventory =$4,000
Accounts receivable =$2,000
Accounts payable =$2,400
A. 25 days
B. 28 days
C. 31 days
D. 35 days
E. 38 days
Answer: D
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