A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's operating cycle is ________ days.

Name: A firm has an average age of inventory of 60 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's operating cycle is ________ days.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The operating cycle is the sum of the average age of inventory (60 days) and the average collection period (45 days), which equals 105 days.

A Firm Has an Average Age of Inventory of 60