On average, Stuff for Less is able to sell their inventory in 23 days. Stuff for Less takes 60 days on average to pay for their purchases. On the other hand, their average customer charges their purchase on a credit card whereby payment is received in 15 days. Given this information, what is the length of operating cycle?

Question

Quizplus · Accepted Answer

The operating cycle is calculated as the sum of the inventory period (23 days) and the accounts receivable period (15 days), which equals 38 days.

On Average, Stuff for Less Is Able to Sell Their