For a Company That Takes an Average of 40 Days

question 126

Essay

For a company that takes an average of 40 days to sell inventory,takes an average of 90 days to collect for its sales,and has payment terms of 60 days on its purchases,what is the financing period? Show calculations.

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Impulse

A sudden urge or desire to act or a brief electrical charge that travels through the nerves.

Medulla Oblongata

The lower portion of the brainstem responsible for regulating vital functions, such as heart rate, breathing, and blood pressure.

Skull

The bony structure forming the head in vertebrates, supporting the structures of the face and protecting the brain.