A company has Raw material holding period- 27 days; Conversion period-25 days; Finished goods holding period-28 days; Period of accounts receivables-20 days; Period of accounts payable three fourth of accounts recievable

CS Executive · Financial and Strategic Management · PYQS · December 2021
A company has Raw material holding period- 27 days; Conversion period-25 days; Finished goods holding period-28 days; Period of accounts receivables-20 days; Period of accounts payable three fourth of accounts recievables; operating cycle period will be:
(A) 65 days
(B) 75 days
(C) 80 days
(D) 85 days

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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