CFA Practice Question
A firm has:
Days sales outstanding = 25
Days payable outstanding = 15
Days receivables outstanding = 7
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 |