Your firm has an inventory turnover rate of 22, a payables turnover rate of 9, and a receivables turnover rate of 17. How long is your firm's operating cycle?

A) 38.06 days
B) 48.00 days
C) 53.98 days
D) 62.03 days
E) 78.62 days

Operating Cycle

The average period of time between the purchase of goods and services for production and the receipt of cash from sales of the final products.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.