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Question:

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.
Explaination

NOC = DOH + DSO − No. of days of payables
15 = 365 /14 + 365 /18 – x
x = 31.35