Louie Corporation Has Provided the Following Data The Company's Operating Cycle for Year 2 Is Closest To

question 21

Multiple Choice

Louie Corporation has provided the following data:
$\begin{array}{lrr}& \text { year 2}& \text {Year 1 }\\\text { Accounts receivable ........ } & \$ 269,000 & \$ 290,000 \\\text { Inventory .................... } & \$ 190,000 & \$ 160,000 \\\text { Sales, on account.......... } & \$ 1,340,000 & \\\text { Cost of goods sold ......... } & \$ 860,000 &\\\end{array}$ The company's operating cycle for Year 2 is closest to:

• A) 81.0 days
• B) 150.5 days
• C) 79.2 days
• D) 9.7 days

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Definitions:

Historical Data

Previous data collected over time that is used to analyze trends, forecast future events, or make comparisons.

Delineated List

A detailed enumeration or cataloging of items, often structured for clarity and ease of understanding.

Request For Proposal

A document issued by an organization to solicit proposals from potential suppliers for a desired project or service.

Bidding Process

The procedure by which a contractor is selected to work on a project, usually involving submission of proposals and selection based on criteria such as price and capability.