Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?

Question

Quizplus · Accepted Answer

The cash cycle is calculated as the inventory period plus the accounts receivable period minus the accounts payable period. Therefore, the cash cycle is 132 days + 43 days - 94 days = 81 days.

Tomas Industries Has an Inventory Period of 132 Days, an Accounts