A firm's operating cycle is equal to its inventory turnover in days (ITD)
A.) plus its receivable turnover in days (RTD).
B.) minus its RTD.
C.) plus its RTD minus its payable turnover in days (PTD).
D.) minus its RTD minus its PTD.
Answer: A
A firm's operating cycle is equal to its inventory turnover in days (ITD)
A.) plus its receivable turnover in days (RTD).
B.) minus its RTD.
C.) plus its RTD minus its payable turnover in days (PTD).
D.) minus its RTD minus its PTD.