Suppose That Freddy's Fries Has Annual Sales of $500,000, Cost

question 74

Multiple Choice

Suppose that Freddy's Fries has annual sales of $500,000, cost of goods sold of $375,000, average inventories of $9,000, and average accounts receivable of $25,000. Assuming that all of Freddy's sales are on credit, what will be the firm's operating cycle?

• A) 27.01
• B) 18.25
• C) 8.76
• D) 9.49