Mentha Company Currently Has the Following Statistics: Days in Accounts

question 41

Multiple Choice

Mentha Company currently has the following statistics: Days in accounts receivable - 68
Operating cycle - 148
What is Mentha's days in inventory?

• A)80 days
• B)68 days
• C)148 days
• D)Cannot be determined from the information given

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Definitions:

Implicit Rate

The interest rate implied or contained within a lease or financial transaction, often not explicitly stated.

Non-Cancelable Lease

A lease agreement that does not allow for unilateral termination by the lessee or lessor under specified conditions.

Economic Life

Refers to the period over which an asset is expected to be usable by an organization, impacting its depreciation calculation and budgetary decisions.

Incremental Borrowing Rate

The interest rate a borrower would have to pay in the current market environment for a similar loan with similar terms and conditions.