The Following Company Information Is Available How Long Is the Company's Operating Cycle?
A) 69 Days

question 65

Multiple Choice

The following company information is available: $$\begin{array} { | l | l | } \hline \text { Days sales outstanding } & 28 \\\hline \text { Days sales in inventory } & 17 \\\hline \text { Days accounts payable outstanding } & 24 \\\hline\end{array}$$
How long is the company's operating cycle?

• A) 69 days
• B) 52 days
• C) 45 days
• D) 11 days

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Definitions:

Capital Budgeting Decision

The process of evaluating and selecting long-term investments that are in line with the firm's goal of value maximization.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.

Quantitative Decision Rule

A structured approach that uses mathematical models and numerical data to help make decisions.

Time Value of Money

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.