The Mentha company currently has the following statistics: Days in inventory 80
Days in accounts receivable 68
What is Mentha's operating cycle?
A) 80.
B) 68.
C) 148.
D) Cannot be determined from the information given.

Question

Quizplus · Accepted Answer

The operating cycle is the sum of the days in inventory and the days in accounts receivable. 
Operating Cycle = Days in inventory + Days in accounts receivable
= 80 + 68
= 148. 
Therefore, the operating cycle of Mentha company is 148 days.

The Mentha Company Currently Has the Following Statistics: Days in Inventory