Linear Technology had sales (all on credit) of $36 million and a gross profit margin of 30% last year. If Linear Technology's inventory averaged $3.9 million, and its accounts receivable were $5.0 million, what was the length of its operating cycle?

Question 6

Answer

a. 107.2 days

b. 90.2 days

c. 111.9 days

d. 128.9 days