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24-12-2020
Mathematics

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A firm has a cash conversion cycle of 80 days, an average collection period of 25 days, and an average age of inventory of 70 days. Its operating cycle is ________ days.

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topeadeniran2 topeadeniran2

29-12-2020

Answer: 95 days

Step-by-step explanation:

Cash conversion cycle = 80 days

Average collection period = 25 days

Average age of inventory = 70 days

Then, operating cycle will be:

= Average collection period + Average age of inventory

= 25 days + 70 days

= 95 days

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