Dallas and More (D & M) Sells Its Inventory in 82

question 95

Multiple Choice

Dallas and More (D & M) sells its inventory in 82 days on average. Its average customer charges his purchase on a credit card whereby payment is received in ten days. On the other hand,D & M takes 56 days on average to pay for its purchases. Given this information,what is the length of D & M's operating cycle?

• A) 26 days
• B) 36 days
• C) 66 days
• D) 92 days
• E) 128 days

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Definitions:

Experiment

A research method in which conditions are controlled and manipulated to test hypotheses and observe the outcomes in a systematic way.

Hypothesized Causes

Proposed explanations or factors that are believed to lead to a particular condition or event, often requiring further investigation or evidence.

Spurious Relationship

A false or misleading correlation between two variables that is not due to any direct relationship but might be due to a third variable or coincidence.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.