A Firm Has Days' Sales in Inventory of 105 Days,an

question 41

Essay

A firm has days' sales in inventory of 105 days,an average collection period of 35 days,and takes 42 days,on average,to pay its accounts payable. Taken together,what do these three figures imply about the firm's operations and its cash flows?

---

Definitions:

Caliper Piston Seal

A seal in a brake caliper that prevents fluid leakage and ensures the piston moves correctly to apply the brake pads.

Caliper Piston

A component within a brake caliper system responsible for moving the brake pads against the rotor to slow or stop the vehicle.

Piston Bore

The cylindrical opening within the engine block in which the piston moves up and down during the engine's operation.

Floating Caliper

A type of brake caliper that moves in relation to the rotor's motion to allow for uniform wear and consistent braking pressure.