A ﬁrm has days' sales in inventory of 105 days, an average collection period of 35 days, and takes
42 days, on average, to pay its accounts payable. Taken together, what do these three ﬁgures imply
about the ﬁrm's operations and its cash ﬂows?

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The Answer of A ﬁrm has days' sales in inventory of 105 days, an average collection period of 35 days, and takes
42 days, on average, to pay its accounts payable. Taken together, what do these three ﬁgures imply
about the ﬁrm's operations and its cash ﬂows?

A ﬁRm Has Days' Sales in Inventory of 105 Days