The Following Company Information Is Available What Is the Company's Operating Cycle (In Days)? (Assume All

question 72

Multiple Choice

The following company information is available: $$\begin{array} { | l | r | } \hline \text { Average accounts receivable } & \$ 700,000 \\\hline \text { Average inventories } & 140,000 \\\hline \text { Average accounts payable } & 130,000 \\\hline \text { Net sales } & 1,000,000 \\\hline \text { Cost of goods sold } & 1,600,000 \\\hline \text { Purchases } & 1,160,000 \\\hline\end{array}$$
What is the company's operating cycle (in days) ? (Assume all sales are made on credit. Round your answer to the nearest day.)

• A) 256 days
• B) 32 days
• C) 287 days
• D) 47 days

---

Definitions:

Minimum Wage Laws

Legislation that sets the lowest hourly wage rate that employers can legally pay their workers, intended to protect workers from exploitation.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded, often considered the market-clearing wage.

Illegal Immigrants

Individuals who enter or reside in a country without the legal permission or in violation of the immigration laws of that country.

Minimum Wage Laws

Legislation that sets the lowest hourly rate of pay that employers can legally pay their workers, intended to protect employees from unduly low pay.