Linear Technology had sales (all on credit) of $36 million and a gross profit margin of 30% last year. If Linear Technology's inventory averaged $3.9 million, and its accounts receivable were $5.0 million, what was the length of its operating cycle?
A) 90.2 days
B) 128.9 days
C) 111.9 days
D) 107.2 days

Question

Quizplus · Accepted Answer

The Answer of Linear Technology had sales (all on credit) of $36 million and a gross profit margin of 30% last year. If Linear Technology's inventory averaged $3.9 million, and its accounts receivable were $5.0 million, what was the length of its operating cycle?
A) 90.2 days
B) 128.9 days
C) 111.9 days
D) 107.2 days

Linear Technology Had Sales (All on Credit) of $36 Million