Excel File

Dwyer Metals has an inventory turnover of 16 and an accounts receivable turnover of 10.
The accounts payable period is 51 days. What is the length of the operating cycle?


Inventory Turnover 16
Accounts receivable turnover 10
Accounts Payable Period 51

Operating Cycle: Inventory period + Accounts receivable period

Inventory Period 22.8125 (365/Inventory Turnover)
Accounts receivable period 36.5 (365/Accounts Receivable Turnover)
Operating Cycle 59.3125