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

Question

Quizplus · Accepted Answer

The operating cycle is the sum of days in inventory and days in accounts receivable. Given that the operating cycle is 148 days and days in accounts receivable are 68 days, days in inventory can be calculated as 148 - 68 = 80 days.

Mentha Company Currently Has the Following Statistics: Days in Accounts