A firm has an inventory turnover rate of 18, a receivables turnover rate of 23, and a
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Question:
A firm has an inventory turnover rate of 18, a receivables turnover rate of 23, and a payables turnover rate of 12. How long is the operating cycle?
O a. 36.15 days
O b. 48.15 days
• c. 24.37 days
O d. 24.15 days
O e. 36.37 days
Dick's Automotive Parts receives an average of 130 cheques per day, totaling $4,800. It normally takes three days for these cheques to be deposited and clear the bank. On a typical day, Dick's writes cheques totaling $1,500. These cheques normally clear in five days.
What is the amount of the net float?
O a. -$7,500
O b. $13,200
O c. -$6,900
O d. $14,400
O e. $3,450
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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