Loxdon Has an Average Collection Period of 7 Days, an Inventory

question 3

Multiple Choice

Loxdon has an average collection period of 7 days, an inventory conversion period of 30 days and a payables deferrable period of 60 days.What is Loxdon's operating cycle?

• A)97 days
• B)37 days
• C)23 days
• D)-23 days

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Definitions:

Data Set

A group of associated data sets made up of distinct components which can be handled together as a single entity by a computer.

Data Set

A collection of related sets of information that is composed of separate elements but can be manipulated as a unit.

Median

A statistical measure representing the middle value in a data set when the values are arranged in ascending or descending order.

Mean

A statistical measure that represents the average value of a set of numbers.