Calculate the operating cash cycle if the inventory turnover period is 21 days, the debtor's turnover period is 37 days and the creditor turnover period is 40 days.

Question

Quizplus · Accepted Answer

The operating cash cycle is calculated as the inventory turnover period plus the debtor's turnover period minus the creditor turnover period. So, it's 21 days + 37 days - 40 days = 18 days.

Calculate the Operating Cash Cycle If the Inventory Turnover Period