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
icon
Related questions
Question

Can you please give answer the general accounting question?

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
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
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer