Assume that Q-Tell Incorporated is in the communications industry, which has an average receivables turnover ratio of 16 times. If the Q-Tell’s receivables turnover is less than that of the industry, Q-Tell’s average receivables collection period is most likely:（）
A: 12 days.
B: 25 days.
C: 20 days.
A: 12 days.
B: 25 days.
C: 20 days.
举一反三
- An analyst has gathered the following data about a company: Average receivables collection period of 95 days Average inventory processing period of 183 days A payables payment period of 274 days What is their cash conversion cycle A: 186 days. B: 552 days. C: 4 days.
- ______ One of the questions the manager would ask when average collection period (days’ sales in receivables) is significantly higher than the industry norm is ___________________________.
- Which<br/>one of the following will not affect the operating cycle?() A: decreasing<br/>the payables turnover from 7 times to 6 times B: increasing<br/>the days sales in receivables C: decreasing<br/>the inventory turnover rate D: increasing<br/>the average receivables balance E: decreasing<br/>the credit repayment times for the firm’s customers
- A company receives 30 days of credit from its suppliers. Inventory turnover averages 15 days. Trade receivables are given 45 days credit. What is the working capital cycle of the company? A: 90 days B: 30 days C: 60 days D: 0 days
- The trade<br/>receivables collection period measures the average number of days<br/>which elapse between acquiring an item of inventory and then selling<br/>or using that item. ( )