Question

W hich of the following is the correct formula to calculate the operating cycle of a company/firm under the Working Capital Management concept ? 

A Gross Operating Cycle = Inventory Holding Period + Debtor Collection Period
B Gross Operating Cycle = Inventory Holding Period + Payables Payment Period
C Net Operating Cycle = Inventory Holding Period + Debtor Collection Period – Payables Payment Period
D Net Operating Cycle = Inventory Holding Period + Payables Payment Period
E Gross Operating Cycle = Debtor Collection Period – Payables Payment Period
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