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BP Has an Operating Cycle of 150 Days, an Average

Question 109

Multiple Choice

BP has an operating cycle of 150 days, an average collection period of 40 days, and an average payment period of 20 days. Based on this information, BPs average age of inventory is ________ days.


A) 130
B) 60
C) 90
D) 110

Correct Answer:

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