What was the length of its operating cycle on these general accounting question? AlphaTech Corporation had sales (all on credit) of $50 millionand a gross profit margin of 25% last year. If AlphaTech'sinventory averaged $4.5 million, and its accounts receivablewere $6.2 million, what was the length of its operating cycle?(Assume a 365-day year.)

Step 1: Define Operating CycleThe operating cycle measures the time it takes for a business to…

Answered: AlphaTech Corporation had sales (all on…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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AlphaTech Corporation had sales (all on credit) of $50 million and a gross profit margin of 25% last year. If AlphaTech's inventory averaged $4.5 million, and its accounts receivable were $6.2 million, what was the length of its operating cycle? (Assume a 365-day year.)