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Mashcka [7]
3 years ago
14

Kurt's entertainment has a receivables turnover rate of 14.8, a payables turnover rate of 10.4 and an inventory turnover rate of

22.6. what is the length of the firm's operating cycle?
Business
1 answer:
ruslelena [56]3 years ago
3 0

The firm’s operating cycle is equivalent to the sum of the total number of days of a cycle of the receivables turnover and the inventory turnover.

Receivables turnover = 365 days / 14.8 = 24.66 days

Inventory turnover = 365 days / 22.6 = 16.15 days

Operating cycle = 24.66 days + 16.15 days = 40.81 days

<span>Answer: 40.81 days</span>

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