If a Firm Has a Cash Cycle of 10 Days

question 58

Multiple Choice

If a firm has a cash cycle of 10 days and an operating cycle of 43 days, what is its payables turnover?

• A) 11.06
• B) 36.5
• C) 8.48
• D) 33

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Definitions:

Required Production

The amount of production a company needs to meet its sales goals and inventory policies, often calculated based on forecasted sales plus target ending inventory minus beginning inventory.

Manufacturing Corporation

A manufacturing corporation is a company engaged in the industrial production of goods and products.

Produced Units

The total number of units manufactured during a specific period.

Raw Materials

Raw materials are the basic, unprocessed physical materials required for manufacturing products.