Norquay Inc

question 86

Multiple Choice

Norquay Inc.manufactures computers.The company tries to minimize the amount of inventory it must carry and therefore only purchases required components after a customer order is received.The computers are usually completed within two days of the customer order and then shipped to the customer on the fourth day following the purchase of materials.Supplier's terms dictate that all purchases must be paid for within 30 days.Norquay offers a deferred financing plan to all of its customers that allow them a 60-day period of no payments or interest.Most of the customers pay their entire balance on the 60th day following delivery of the computer.What is Norquay's inventory self-financing period?

• A)2 days
• B)4 days
• C)30 days
• D)34 days