The net operating cycle of this company is closest to:

Given the following financial statement data, calculate the net operating cycle for this
company.
In millions
Credit sales $40,000
Cost of goods sold $30,000
Accounts receivable $3,000
Inventory – Beginning balance $1,500
Inventory – Ending balance $2,000
Accounts payable $4,000
A. 3.8 days.
B. 24.3 days.
C. 51.7 days.

Answer: A. 3.8 days.

Business

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