Solve with explanation and accounting question If the average age of inventory is 75 days, the average age of accounts payableis 45 days, and the average age of accounts receivable is 50 days, the numberof days in the cash flow cycle is:A. 170 daysB. 125 daysC. 80 daysD. 30 days

Step 1: Definition of Cash Flow CycleThe Cash Flow Cycle (Cash Conversion Cycle) is the period of…

Answered: If the average age of inventory is 75…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4BE

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If the average age of inventory is 75 days, the average age of accounts payable is 45 days, and the average age of accounts receivable is 50 days, the number of days in the cash flow cycle is: A. 170 days B. 125 days C. 80 days D. 30 days