D&M Sells Its Inventory in 67 Days on Average

question 78

Multiple Choice

D&M sells its inventory in 67 days on average.Their customers generally charge their purchases on a credit card with payment being received in 2 days.The company takes 61 days on average to pay for its purchases.Given this information,what is the length of the company's cash cycle?

• A)42 days
• B)36 days
• C)13 days
• D)17 days
• E)8 days

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Definitions:

Postindustrial

Relating to a period or society in which manufacturing industry is no longer the principal economic activity, typically marked by the growth of services, information, and technology sectors.

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The amount of money received by an individual or group over a certain period, typically earned through work, investments, or other sources.

Attractiveness

The property of having qualities that are appealing or pleasing in appearance or other traits.