The following information is available for Bluefield Company for the most recent year. What was Bluefield's operating cycle for the most recent year? (rounded)
A)30 days
B)50 days
C)80 days
D)120 days

Question

The following information is available for Bluefield Company for the most recent year.  What was Bluefield's operating cycle for the most recent year? (rounded)
A)30 days 
B)50 days 
C)80 days 
D)120 days

Quizplus · Accepted Answer

$1,100,000 sales/$90,000 accounts receivable = 12.22 accounts receivable turnover; 365 days/12.22 = 30 average days in receivables; $760,000 cost of goods sold/$105,000 = 7.24 inventory turnover; 365 days/7.24 = 50 average days in inventory; 30 days + 50 days = 80 days

The Following Information Is Available for Bluefield Company for the Most