Assume a firm's production process requires an average of 80 days to go from raw materials to finished products and another 40 days before the finished goods are sold. If the accounts receivable cycle is 70 days and the accounts payable cycle is 80 days, what would the operating cycle be?
A) 110 days
B) 130 days
C) 190 days
D) 270 days
Correct Answer:
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