Summit Industries has a receivables turnover rate of 10.4, a payables turnover rate of 9.6, and an inventory turnover rate of 12.8. What is the length of the firm's operating cycle? a. 45.63 days b. 58.27 days c. 63.62 days d. 70.19 days e. 85.94 days
Summit Industries has a receivables turnover rate of 10.4, a payables turnover rate of 9.6, and an inventory turnover rate of 12.8. What is the length of the firm's operating cycle? a. 45.63 days b. 58.27 days c. 63.62 days d. 70.19 days e. 85.94 days
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 8CDQ
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Can you please give answer the general accounting question?

Transcribed Image Text:Summit Industries has a receivables turnover rate of 10.4, a payables turnover rate of 9.6, and an
inventory turnover rate of 12.8. What is the length of the firm's operating cycle?
a. 45.63 days
b. 58.27 days
c. 63.62 days
d. 70.19 days
e. 85.94 days
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