Your Firm Has an Inventory Turnover Rate of 14,a Payables

question 98

Multiple Choice

Your firm has an inventory turnover rate of 14,a payables turnover rate of 8,and a receivables turnover rate of 19.How long is your firm's operating cycle?

• A)45.06 days
• B)45.28 days
• C)45.63 days
• D)53.13 days
• E)53.78 days

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Definitions:

Idle Cash

Refers to the money that a company has not invested or used in any way to earn more income.

Equity Method

An accounting technique used by firms to assess the profits earned from their investments in other companies, by reporting these profits proportional to their ownership percentage.

Dividend Revenue

Dividend revenue refers to the income earned by investors or companies from holding shares of other entities that pay dividends.