Monarch Supplies has a receivables turnover rate of 10.5, a payables turnover rate of 9.8, and an inventory turnover rate of 14.2. What is the length of the firm's operating cycle? Options: a. 58.34 days b. 69.82 days c. 76.45 days d. 81.28 days e. 92.55 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
Chapter22: Providing And Obtaining Credit
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Monarch Supplies has a receivables turnover rate of 10.5, a payables
turnover rate of 9.8, and an inventory turnover rate of 14.2. What is the
length of the firm's operating cycle?
Options:
a. 58.34 days
b. 69.82 days
c. 76.45 days
d. 81.28 days
e. 92.55 days
Transcribed Image Text:Monarch Supplies has a receivables turnover rate of 10.5, a payables turnover rate of 9.8, and an inventory turnover rate of 14.2. What is the length of the firm's operating cycle? Options: a. 58.34 days b. 69.82 days c. 76.45 days d. 81.28 days e. 92.55 days
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