Operating Cycle: Stamp Ltd Has an Operating Cycle of 81

question 68

Multiple Choice

Operating cycle: Stamp Ltd has an operating cycle of 81 days and takes 47 days to collect on its receivables. What is its level of inventory if the company's cost of sales is $312,455? Round to the nearest dollar.

• A) $9,190
• B) $14,685
• C) $29,105
• D) $69,339

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Definitions:

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1933 Act

Also known as the Securities Act of 1933, a U.S. law enacted to ensure more transparency and honesty in the marketing and sale of securities, aiming to prevent frauds.

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Dodd-Frank Act of 2010

a comprehensive and complex piece of financial reform legislation passed in 2010 in the United States, aimed at preventing the repeat of the financial crisis of 2008.