A firm's operating cycle is equal to its inventory turnover in days (ITD)

Related MCQs

• A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in:
• Inventory Turnover measures the relationship of inventory with:
• In Inventory Turnover calculation, what is taken in the numerator?
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in
• Annual credit sales Rs. 4,00,000; Average collection period 45 days (assume 360 days in a year). What is Average debtors?
• Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, its ending accounts receivable balance is closest to . (Assume a 365-day year.)
• Ninety-percent of X company's total sales of $600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively:
• Working Capital Turnover measures the relationship of Working Capital with:
• If the sales of the firm are . 60,00,000 and the average debtors are . 15,00,000 then the receivables turnover is