CFA Practice Question

CFA Practice Question

A firm has:

Days inventory outstanding = 30
Days sales outstanding = 25
Days payable outstanding = 15
Days receivables outstanding = 7

What is the company's operating cycle?
A. 37
B. 47
C. 72
Explanation: Operating Cycle = Days inventory outstanding + Days receivables outstanding

User Contributed Comments 4

User Comment
jazzguitar Shouldn't DSO and DRO be the same?
harrybay Yeah that's what I also thought
sshetty2 i guess days of receivable outstanding isn't a thing
sshetty2 woops misread explanation
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