Szabo Company Computed the Following Data for 2012 The Estimated Operating Cycle for 2012 Is:
A)97

question 55

Multiple Choice

Szabo Company computed the following data for 2012. $\begin{array}{ll}\text { Days' sales in receivables } & 38.7 \text { days } \\\text { Accounts receivable turnover } & 9.6 \text { times } \\\text { Accounts receivable turnover in days } & 35.1 \text { days } \\\text { Days' sales in inventory } & 68.5 \text { days }\\\text { Merchandise inventory turnover } & 5.9 \text { times } \\\text { Inventory turnover in days } & 58.7 \text { days }\\\end{array}$ The estimated operating cycle for 2012 is:

• A)97.4 days.
• B)107.2 days.
• C)93.8 days.
• D)108.0 days.
• E)90.7.

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Definitions:

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date, representing a liability.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, often shown on the income statement.

Face Value

The nominal or dollar value printed on a security or financial instrument, representing its legal value.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future date.