question archive A firm has an accounts payable period of 54 days, an inventory period of 69 days, and an accounts receivable period of 37 days
A firm has an accounts payable period of 54 days, an inventory period of 69 days, and an accounts receivable period of 37 days
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A firm has an accounts payable period of 54 days, an inventory period of 69 days, and an accounts receivable period of 37 days. What is the length of the cash cycle?
A)54 daysB)52 daysC)106 daysD)86 days
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Computation of the length of cash cycle:-
Cash cycle = Days of inventory outstanding + Days of receivable outstanding - Days in payable outstanding
= 69 + 37 - 54
= 52 days
