New life Ltd. has a receivables turnover rate of 11.5, a payables turnover of 9.8 and an inventory turnover rate of 13.6. Assuming a 365-day year, what is the length of the firms operating cycle? 27 days 32 days 58 days 59 days

New life Ltd. has a receivables turnover rate of 11.5, a payables turnover of 9.8 and an inventory turnover rate of 13.6. Assuming a 365-day year, what is the length of the firms operating cycle? 27 days 32 days 58 days 59 days

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.4BE: Accounts receivable analysis A company reports the following: Sales 3,150,000 Average accounts...

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Question

QUESTION 12

New life Ltd. has a receivables turnover rate of 11.5, a payables turnover of 9.8 and an inventory turnover rate of 13.6. Assuming a 365-day year, what is the length of the firms operating cycle?

27 days
32 days
58 days
59 days

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