A fiRm Has an Inventory Turnover Rate of 18, a Receivables

question 241

Multiple Choice

A firm has an inventory turnover rate of 18, a receivables turnover rate of 23, and a payables turnover rate of 12. How long is the operating cycle?

• A) 24.15 days
• B) 24.37 days
• C) 36.15 days
• D) 36.37 days
• E) 48.15 days

---

Definitions:

NaCl

Sodium chloride, commonly known as table salt, an ionic compound consisting of sodium and chloride ions.

AgCl

Silver chloride, a white crystalline solid that is photosensitive and less soluble in water.

Spectator Ions

Ions that are present in a chemical reaction but do not participate in it, remaining unchanged throughout the reaction.

Potassium Iodide

A chemical compound used in medical treatments, nutritional supplements, and as a protective measure against radioiodine exposure.