A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is _ days.

Name: A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is _ days.
Brand: Quizplus
Rating: 4.8 (58 reviews)

Question

Quizplus · Accepted Answer

The operating cycle is calculated as the sum of the average collection period and the average age of inventory: 25 days + 70 days = 95 days.

A Firm Has a Cash Conversion Cycle of 80 Days