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:

Future

The time or a period of time following the present moment, often considered as yet to come.

Decisions

The process of making choices or conclusions based on available information or reasoning.

Temporal Discounting

The tendency to value immediate rewards more highly than future rewards.

Preference

An individual's choice or predilection towards certain ideas, objects, or outcomes over others.