Candy Corner Has an Inventory Turnover Rate of 14

question 27

Multiple Choice

Candy Corner has an inventory turnover rate of 14.6,an accounts payable period of 43.7 days,and an accounts receivable period of 32.4 days.What is the length of the cash cycle?

• A)14.2 days
• B)11.8 days
• C)12.1 days
• D)17.3 days
• E)13.7 days

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Definitions:

National Saving

The total amount of saving in a country, which includes both private savings and public (government) savings.

Closed Economy

An economic system that does not engage in international trade with outside countries, relying on its own resources.

Accounting Identity

A fundamental equation that must always hold true, often without regard to time or specific instances, in accounting and economics.

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.