The operating cycle for this company is closest to:

Given the following financial statement data, calculate the operating cycle for this company.
In millions
Credit sales $25,000
Cost of goods sold $20,000
Accounts receivable $2,500
Inventory – Beginning balance $2,000
Inventory – Ending balance $2,300
Accounts payable $1,700
A. 42.0 days.
B. 47.9 days.
C. 78.5 days.

Answer: C. 78.5 days.

Business

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