Question 17 Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days per year. O 117.62 days O 28.04 days O 106.90 days 5 pts 78.19 days O 89.58 days
Question 17 Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days per year. O 117.62 days O 28.04 days O 106.90 days 5 pts 78.19 days O 89.58 days
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 17
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Ferry's Furniture Outlet has an accounts receivable period of 50.15 days and an accounts payable period of 39.43 days. The
company turns over its inventory 5.41 times per year. What is the length of the company's operating cycle? Assume 365 days
per year.
O 117.62 days
O 28.04 days
O 106.90 days
O 78.19 days
O 89.58 days
Question 18
Which statement is true?
O A decrease in the accounts receivable turnover rate decreases the cash cycle.
5 pts
5 pts
Expert Solution
Step 1
the final answer is option a) 117.62
detailed explanation:-
given information we have,
Accounts Receivable Period=50.15 days
Accounts Payable Period=39.43 days
Inventory Turnover ratio= 5.41 times
No of days in year =365
Inventory Period = No of days in year/ Inventory Turnover ratio
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