BP Has an Operating Cycle of 120 Days, an Average

question 104

Multiple Choice

BP has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days.Based on this information, BPs average age of inventory is ________ days.

• A)80
• B)50
• C)90
• D)70
• E)none of the above