Question: Your firm is considering several options concerning its inventory, receivables, and payables. Data is shown below. Required: (a) Which option has the longest operating cash

Your firm is considering several options concerning its inventory, receivables, and payables. Data is shown below.

Required:
(a) Which option has the longest operating cash cycle?
(b) Which option has the shortest operating cash cycle?

Options Number of Days Average inventory turnover period Average collection period for receivables 4557 30 30 6 60 75 Average payment period for payables55 90 6030 60 45 110 72 86 3030 60 30 40

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