question archive Adams Manufacturing Corporation has a days sales outstanding period of 49 days, a days inventory held period of 83 days, and a days payable outstanding period of 36 days
Adams Manufacturing Corporation has a days sales outstanding period of 49 days, a days inventory held period of 83 days, and a days payable outstanding period of 36 days
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Adams Manufacturing Corporation has a days sales outstanding period of 49 days, a days inventory held period of 83 days, and a days payable outstanding period of 36 days. What is Adams operating cycle?
- 96 days
- 70 days
- 85 days
- 132 days
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Answer:
The formula for computing the operating cycle is:
Operating cycle= Inventory period+ Receivables collection period
= 83 days + 49 days
= 132 days
Hence, the answer is option d.
