An analyst gathers the following information about a company: Inventory turnover 14 times Receivables turnover 18 times If the company’s net operating cycle equals 15 days, the company’s number of days of payables is closest to:
A
31 days.
explanation
NOC = DOH + DSO − No. of days of payables 15 = 365 /14 + 365 /18 – x x = 31.35
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