A Firm Purchased Raw Materials on Account and Paid for Them

Multiple Choice

A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finished good sold on account 100 days after the raw materials were purchased. The customer paid for the finished good 60 days later. The firm's cash conversion cycle is___________ days.

A) 190
B) 130
C) 70
D) 10