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:

Infinite Population

A theoretical concept where the size of the population is limitless or indefinitely large.

Mean

The average of a set of numbers, calculated by dividing the sum of the values by the number of values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are.

Statistical Inference

The process of using data obtained from a sample to make estimates or test hypotheses about the characteristics of a population.