Consider the following information: Suppliers’ payment period 40 days Receivables’ collection period 40 days Finished goods holding period 15 days Work – in progress holding period 10 days Raw materials inventory holding period 20 days a) what is the operating cycle? Select one:

Consider the following information: Suppliers’ payment period 40 days Receivables’ collection period 40 days Finished goods holding period 15 days Work – in progress holding period 10 days Raw materials inventory holding period 20 days a) what is the operating cycle? Select one:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Consider the following information:

Suppliers’ payment period 40 days

Receivables’ collection period 40 days

Finished goods holding period 15 days

Work – in progress holding period 10 days

Raw materials inventory holding period 20 days

a) what is the operating cycle?

Select one:

A. 75 days

B. 85 days

C. 70 days

D. None of the above

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