A fiRm Has Average Inventory of $1,250,000, an Inventory Period

question 418

Multiple Choice

A firm has average inventory of $1,250,000, an inventory period of 58 days, a receivables period of 32 days, and average payables of $810,000. What is its cash cycle?

• A) 48 days
• B) 52 days
• C) 58 days
• D) 67 days
• E) 74 days

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Definitions:

Methods

Systematic and structured procedures or techniques used in research, experimentation, or observation to obtain and analyze data.

Individual Case

An in-depth analysis or investigation of a single subject, unit, or event, often used in psychological, sociological, or medical research to gather detailed information.

Self-help Group

A voluntary association of individuals who share a common desire to overcome psychological or physical challenges, offering mutual support and resources.

Group Therapy

A form of psychotherapy in which one or more therapists treat a small group of clients together as a group.