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Given below are comparative balance sheets and an income statement for Eleva Corporation.
All sales were made on account.Cash dividends declared during the year totaled $22,984.
-Eleva Corporation's operating cycle (in days)for 2018 is:
A)158.8 days.
B)122.0 days.
C)213.4 days.
D)188.0 days.

Question

[The following information applies to the questions displayed below.]
Given below are comparative balance sheets and an income statement for Eleva Corporation.
   All sales were made on account.Cash dividends declared during the year totaled $22,984.
-Eleva Corporation's operating cycle (in days)for 2018 is:
A)158.8 days. 
B)122.0 days. 
C)213.4 days. 
D)188.0 days.

Quizplus · Accepted Answer

The operating cycle is calculated as the sum of the inventory period and the accounts receivable period. Based on the given choices, 158.8 days is the correct operating cycle for Eleva Corporation in 2018.

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