Ask Question
BusinessBusiness
4 December, 04:19

If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cycle?

+4
Answers (1)
  1. 4 December, 06:18
    0
    It is 16.9

    Explanation:

    Operating cycle = Inventory turnover + Receivable turn over - payable turnover

    Hence, Operating cycle = 7.3+9.6

    =16.9

    Operating cycle implies how long it takes us to convert entire production process to cash.

    It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.

    A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cycle? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If a firm increases its output quantity when marginal revenue is less than marginal cost then its profits will: IncreaseA DecreaseB Be positiveC Be negativeD
Answers (1)
McDonald's conducts a value chain analysis of Burger King and discovers that Burger King's logistics and procurement of inputs are less costly than its own, which allows Burger King to achieve a higher profit margin.
Answers (1)
Which of the following is not a determinant of the price elasticity of demand for a good? a. the time horizon b. the steepness or flatness of the supply curve for the good c. the definition of the market for the good d.
Answers (1)
The sale of government bonds by the federal reserve banks to commercial banks will
Answers (1)
The Kittle Company's 30-year, $1,000 par-value bonds currently sell for $1,125.50. Assuming interest is paid annually and the bond's coupon rate is 10%, what is the bond's yield-to-maturity?
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)
Home » Business » If Abrams Company has an inventory turnover of 7.3 and a receivables turnover of 9.6, approximately how long is its operating cycle?
Sign Up Forgot Password?