Post Corporation purchases from suppliers on net 30 day terms,has an Accounts Receivable Turnover of 8 times,and an Inventory Turnover of 12 times.Cash inflows and outflows are
A)evenly matched.
B)negatively mismatched by 60 days.
C)positively mismatched by 30 days.
D)negatively mismatched by 45 days.

Question

Quizplus · Accepted Answer

Days = Purchases - A/R - Inventory = 30 - 45 - 30 = -45 days

Post Corporation Purchases from Suppliers on Net 30 Day Terms,has