Calculate the operating cash cycle if the inventory turnover period is 21 days,the debtor's turnover period is 32 days and the creditor turnover period is 40 days.

Name: Calculate the operating cash cycle if the inventory turnover period is 21 days,the debtor's turnover period is 32 days and the creditor turnover period is 40 days.
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Question

Quizplus · Accepted Answer

The operating cash cycle is calculated as: Inventory Turnover Period + Debtor's Turnover Period - Creditor Turnover Period = 21 + 32 - 40 = 13 days.

Calculate the Operating Cash Cycle If the Inventory Turnover Period