5

Toronto Donuts Bakery collects 60% of its monthly sales immediately and the rest a month later. Its production costs are 70% of sales. It holds 70% of sales in inventory for 1 month and 30% of sales in inventory for 45 days. It pays 20% of its bills immediately and 80% after 30 days. Assume 30 days per month, Calculate the operating cycle. 34.5 Days 30 Days 22.5 Days 46.5 Days 45 Days