Assume a Firm's Production Process Requires an Average of 80

question 37

Multiple Choice

Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold.If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the short-term operating cycle be?

• A)110 days
• B)130 days
• C)190 days
• D)270 days

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Definitions:

Custodial Mother

A mother who has been granted physical and/or legal custody of a child by a court of law.

Financial Disadvantage

A state or condition where individuals or groups have less economic resources and opportunities than others in society.

Stepfamily Integration

The process by which members of a stepfamily adjust and blend their relationships, roles, and expectations to form a cohesive family unit.

Months

Units of time in calendars that approximate the natural period related to the motion of the Moon; used to measure longer periods of time than days and shorter than years.