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Center Enterprises Currently Has an Operating Cycle of 58 Days

Question 228

Multiple Choice

Center Enterprises currently has an operating cycle of 58 days. You are analyzing some operational changes which are expected to increase the accounts receivable period by 4 days and decrease
The inventory period by 3 days. The accounts payable turnover rate is expected to increase from 9
To 12 times per year. If all of these changes are adopted, what will Center's new operating cycle be?


A) 56 days
B) 57 days
C) 59 days
D) 60 days
E) 65 days

Correct Answer:

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