Forest Glen Furniture Company has the following ratios: days accounts payable outstanding, 55; days inventory held, 50; days receivable outstanding, 65. Which one of the following is the correct number of days that cash inflows and outflows are mismatched (i.e., the cash cycle)?

Explanation: The correct computation is 65 + 50 - 55 equals 60 days. This means that Forest Glen must pay its suppliers 60 days before it collects cash from its customers.