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Using the Information Provided,what Is the Length of the Production

Question 1

Multiple Choice

Using the information provided,what is the length of the production cycle for the firm? Allied Industries, Inc.
Selected Income Statement Items, 2017
 Cash Sales $1,500,000 Credit Sales $7,500,000 Total Sales $9,000,000 COGS $6,000,000\begin{array}{ll}\text { Cash Sales } & \$ 1,500,000 \\\text { Credit Sales } & \$ 7,500,000 \\\text { Total Sales } & \$ 9,000,000 \\\text { COGS } & \$ 6,000,000\end{array}
Allied Industries, Inc.
Selected Balance Sheet Accounts
12/31/201712/31/2016 Change  Accounts Receivable $270,000$240,000$30,000 Inventory $125,000$100,000$25,000 Accounts Payable $110,000$90,000$20,000\begin{array}{llll}&12/31/2017 &12/31/2016&\text { Change }\\\text { Accounts Receivable } & \$ 270,000 & \$ 240,000 & \$ 30,000 \\\text { Inventory } & \$ 125,000 & \$ 100,000 & \$ 25,000 \\\text { Accounts Payable } & \$ 110,000 & \$ 90,000 & \$ 20,000\end{array}


A) 6.08 days
B) 7.60 days
C) 53.33 days
D) 6.84 days

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