Suppose That Darlene's Donuts Has Annual Sales of $200,000; Cost

question 13

Multiple Choice

Suppose that Darlene's Donuts has annual sales of $200,000; cost of goods sold of $90,000; average inventories of $4,000; average accounts receivable of $10,000; and an average accounts payable balance of $7,000. Assuming that all of Darlene's sales are on credit, what will be the firm's cash cycle?

• A) 6.08
• B) 28.39
• C) 34.47
• D) 62.86

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