Use the following firm working capital cycle information for questions
$\begin{array}{ll}
\text { Days accruals}&11 \
\text {Days cash }& 5\
\text {Days inventory }& 29\
\text {Days accounts payables }& 19\
\text {Days accounts receivables }&31 \
\
\text { Average Daily COGS }&\$18
\end{array}$

-What is the firm's liability cycle?
A) 30 days
B) 59 days
C) 65 days
D) 95 days
E) 113 days

Question

Use the following firm working capital cycle information for questions 
 $\begin{array}{ll}
\text { Days accruals}&11 \
\text {Days cash }& 5\
\text {Days inventory }& 29\
\text {Days accounts payables }& 19\
\text {Days accounts receivables }&31 \
\
\text { Average Daily COGS }&\$18
\end{array}$

-What is the firm's liability cycle?
A) 30 days
B) 59 days
C) 65 days
D) 95 days
E) 113 days

Quizplus · Accepted Answer

The firm's liability cycle is calculated as the sum of days accruals and days accounts payables, which is 11 days + 19 days = 30 days.

Use the Following Firm Working Capital Cycle Information for Questions