Abbot Corporation has an average collection period of 49 days, an inventory conversion period of 83 days, and a payables deferrable period of 36 days. What is Abbott's operating cycle?
A) 96 days
B) 70 days
C) 85 days
D) 132 days

Question

Quizplus · Accepted Answer

The operating cycle is calculated as the sum of the average collection period and the inventory conversion period. So, it's 49 days + 83 days = 132 days.

Abbot Corporation Has an Average Collection Period of 49 Days