Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?

A) -5 days
B) 5 days
C) 81 days
D) 103 days
E) 183 days

Question

ceecee smith · Accepted Answer

Final Answer : C, Explanation :  The cash cycle is calculated as the inventory period plus the accounts receivable period minus the accounts payable period. Therefore, the cash cycle is 132 days + 43 days - 94 days = 81 days.

Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?

A) -5 days
B) 5 days
C) 81 days
D) 103 days
E) 183 days

Definitions

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Learning Objectives

Related questions

Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?A) -5 daysB) 5 daysC) 81 daysD) 103 daysE) 183 days

Definitions

Learning Objectives

Learning Objectives

Related questions

Tomas Industries has an inventory period of 132 days, an accounts payable period of 94 days, and an accounts receivable period of 43 days. What is the length of the cash cycle?

A) -5 days
B) 5 days
C) 81 days
D) 103 days
E) 183 days