A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) collection period is 40 days; Credit period allowed by suppliers (Creditors) is 50 days. What is the len

CS Executive · Financial and Strategic Management · PYQS · June 2024
A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) collection period is 40 days; Credit period allowed by suppliers (Creditors) is 50 days. What is the length of operating cycle of the company ?
(A) 85 days
(B) 40 days
(C) 35 days
(D) 135 days

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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