Can someone help me figure out this problem ? Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year? A. 90 days and 4.06 times B. 80 days and 4.06 times C. 70 days and 3.06 times D. 90 days and 3.06 times
Can someone help me figure out this problem ? Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year? A. 90 days and 4.06 times B. 80 days and 4.06 times C. 70 days and 3.06 times D. 90 days and 3.06 times
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can someone help me figure out this problem ?
Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers.
Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?
| A. |
90 days and 4.06 times |
|
| B. |
80 days and 4.06 times |
|
| C. |
70 days and 3.06 times |
|
| D. |
90 days and 3.06 times |
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