Determining the turnover ratios


Given the following turnover ratios, approximately how many days on average would it take this company to sell inventory on credit and then collect the accounts receivable resulting from the sale (use a 360 day year)?

Inventory turnover4

Accounts receivable turnover6

Accounts payable turnover9

PPE turnover 3

A)190 days

B)150 days

C)130 days

D)310 days

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Finance Basics: Determining the turnover ratios
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