If it takes Gledhill Company 45 days to sell inventory, 23 days to collect from the sale, and creditors' payment terms are 30 days, the financing period is
A) 98 days.
B) 23 days.
C) 45 days.
D) 38 days.

Question

Quizplus · Accepted Answer

The financing period is calculated as the inventory period (45 days) plus the collection period (23 days) minus the creditors' payment period (30 days), resulting in 38 days.

If It Takes Gledhill Company 45 Days to Sell Inventory