If a Firm Has a Cash Cycle of 25 Days

question 21

Multiple Choice

If a firm has a cash cycle of 25 days and an operating cycle of 80 days, what is its payables turnover?

• A) 14.6
• B) 4.56
• C) 6.64
• D) 55

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Definitions:

Transportation Problem

A logistical issue involving the optimal distribution of goods or services from several sources to several destinations.

Routes Filled

The successful assignment or completion of pathways or delivery channels according to plan or schedule.

Dummy Sources

Artificial shipping source points created when total demand is greater than total supply to effect a supply equal to the excess of demand over supply.

Transportation Problem

A logistical dilemma involving the determination of the most cost-efficient routing of goods from several supply points to various demand locations.