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Calculate the Operating Cash Cycle in Days If All Sales

Question 43

Multiple Choice

Calculate the operating cash cycle in days if all sales are for cash, inventory is turned over 7 times a year and creditors are paid on average 5 times a year.


A) 52.1 days
B) -20.9 days
C) 125.1 days
D) +20.9 days

Correct Answer:

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