A Firm Has an Inventory Turnover Rate of 15

question 26

Multiple Choice

A firm has an inventory turnover rate of 15.2,a receivables turnover rate of 16.8,and a payables turnover rate of 12.7.How long is the operating cycle?

• A)39.19 days
• B)45.74 days
• C)42.87 days
• D)33.08 days
• E)53.37 days

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Definitions:

Personal Defenses

Legal defenses used in contract law that relate to the specific circumstances or relationships between the parties involved, affecting the enforceability of the contract.

Holder in Due Course

A legal term referring to a party that has acquired a negotiable instrument in good faith and for value, thereby having certain rights to enforce the instrument free of many defenses.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, and which can be transferred to another holder.

Natural Persons

Individuals in their capacity as humans in law, as opposed to legal entities like corporations.