Calculate the Operating Cash Cycle in Days If All Sales

question 60

Multiple Choice

Calculate the operating cash cycle in days if all sales are for cash, inventory is turned over 8 times a year and creditors are paid on average 5 times a year.

• A)-27.4 days.
• B)52.1 days.
• C)125.1 days.
• D)27.4 days.

Assess the impact of legal and market forces in challenging monopolies.

Explore the characteristics and effects of natural monopolies.

Understand the characteristics and outcomes of monopolistic markets versus perfect competition.

Analyze the economic impacts of monopolies on prices and output levels.

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Definitions:

Discounted Payback

A capital budgeting method that calculates the time needed to recoup the initial investment in present value terms.

Compute

The process of using mathematical and logical operations to perform tasks and solve problems by a computer.

Average Accounting Return

The average accounting return is a financial ratio that represents the average annual accounting profit compared to the initial investment.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by finding the interest rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.