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:

Thymine

One of the four nitrogenous bases in DNA, pairing with adenine through hydrogen bonds.

Cytosine

A nitrogenous base found in DNA and RNA, pairs with guanine, and plays a role in encoding genetic information.

Poly-A Tail

A stretch of adenine nucleotides added to the 3' end of mRNA molecules in eukaryotic cells, aiding in stability and export from the nucleus.

mRNA

Messenger RNA, a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein product.