Calculate the operating cash cycle if the inventory turnover period is 21 days, the debtor's turnover period is 32 days and the creditor turnover period is 40 days.
A) 13 days
B) 53 days
C) -13 days
D) 93 days

Question

Quizplus · Accepted Answer

The operating cash cycle is calculated as the sum of the inventory turnover period and the debtor's turnover period, minus the creditor turnover period: 21 + 32 - 40 = 13 days.

Calculate the Operating Cash Cycle If the Inventory Turnover Period