Johnson Electronics turns over its inventory in 35 days. The company collects receivables on average in 7 days, while it takes 40 days to pay its suppliers. What is the length of the operating cycle? a. 42 days b. 35 days c. 47 days d. 70 days

Johnson Electronics turns over its inventory in 35 days. The company collects receivables on average in 7 days, while it takes 40 days to pay its suppliers. What is the length of the operating cycle? a. 42 days b. 35 days c. 47 days d. 70 days

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...

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