Mentha Company currently has the following statistics: Days in inventory

Question

Mentha Company currently has the following statistics: Days in inventory - 80
Days in accounts receivable - 68
What is Mentha's operating cycle?
A)80 days
B)68 days
C)148 days
D)Cannot be determined from the information given

Quizplus · Accepted Answer

The operating cycle of a company is equal to the days in inventory plus the days in accounts receivable. Therefore, Mentha's operating cycle is 80 + 68 = 148 days.