BP has an operating cycle of 120 150 days, an average collection period of 40 days, and an average payment period of 30 20 days.Based on this information, BPs average age of inventory is ________ days.
A)50130
B)60
C)7090
D)80110
E)none of the above

Question

Quizplus · Accepted Answer

The information given in the question is insufficient to calculate the average age of inventory. We only have the operating cycle, average collection period, and average payment period.  We need the inventory turnover ratio or the average age of inventory formula, which is not provided. Therefore, none of the given options is the correct answer.

BP Has an Operating Cycle of 120 150 Days, an Average