Homer Boats has accounts payable days of 20, inventory days of 50, and accounts receivable days of

Question:

Homer Boats has accounts payable days of 20, inventory days of 50, and accounts receivable days of 30. What is its operating cycle?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...