A firm has an operating cycle of 120 days an average


A firm has an operating cycle of 120 days, an average collection period of 40 days, and an average payment period of 30 days. The firm’s average age of inventory is _____days.

A. 80

B. 50

C. 90

D. 70

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Finance Basics: A firm has an operating cycle of 120 days an average
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