perating cycle?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Question 9**
The Management accountant of Stylo plc has calculated the following ratios for the company’s recent financial year:
- **Average inventory turnover period:** 42.6 days
- **Average trade payables turnover period:** 72.6 days
- **Average trade receivables turnover period:** 58.7 days
**What is the length of the company’s operating cycle?**
- a. 28.7 days
- b. 173.9 days
- c. 56.5 days
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