Register
If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period
217k views
2 votes
If a firm has a cash cycle of 30 days and an operating cycle of 64 days, what is its average payment period

User Mark Walet
by
5.0k points

1 Answer

6 votes

Answer: 34 days

Step-by-step explanation:

The average payment period is a measure that is used to show the time the firm takes on average to pay its creditors.

The formula is:

Cash cycle = Operating cycle - Average payment period

30 = 64 - APP

APP + 30 = 64

APP = 64 - 30

APP = 34 days

User StevieD
by
4.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.3m questions

6.9m answers

Other Questions

Decker Tires' free cash flow was just FCF0 = $1.32. Analysts expect the company's free cash flow to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The WACC
For this question, assume that the expected rate of inflation is a function of the past year's inflation. Also, assume that the unemployment rate has been equal to the natural rate of unemployment for
Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Risa has to work long hours and sometimes weekends, losing out on family time. Risa doesn't find her long hours overly stressful, but rather she sees it as her contribution to maintaining her family's
Bob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to let Bob go free if he confesses to the crime and testifies against Tom. Bob
Link Copied!