If a Firm Has a Cash Cycle of 75 Days

question 37

Multiple Choice

If a firm has a cash cycle of 75 days and an operating cycle of 120 days, what is its payables turnover?

• A) 8.11
• B) 7.19
• C) 5.97
• D) 6.73

---

Definitions:

Political Action Committees

Organizations that collect funds to donate to political campaigns or to spend on political advertising in support of, or opposition to, specific candidates or policies.

External Marketing Factor

Influences originating outside a company that affect its marketing strategy and performance, such as economic conditions or social trends.

Consumer Protection Agency

A governmental organization dedicated to safeguarding the rights and interests of consumers, often by enforcing laws against unfair business practices.

Federal Trade Commission

A United States federal agency established to prevent unfair business practices and protect consumers from anticompetitive, deceptive, and unfair business practices.