Assuming an Entity Sells Inventory Only on Credit Terms,use the Following

Multiple Choice

Assuming an entity sells inventory only on credit terms,use the following information to calculate the length of the entity's activity cycle and cash cycle.
Days inventory is 60 days.
Days debtors is 35 days.
Days creditors is 30 days.

A) Activity cycle is 95 days; cash cycle is 65 days.
B) Activity cycle is 65 days; cash cycle is 95 days.
C) Activity cycle is 65 days; cash cycle is 30 days.
D) Activity cycle is 95 days; cash cycle is 30 days.