Question

Here are several ratios calculated from Midas Company's financial statements: Days in Receivables = 45 Days in Payables = 36 Days in Inventory = 30 How many days of working capital financing does Midas need to obtain from other sources? Select one: a. 56 days b. 39 days c. 36 days d. 26 days

Answer 1

Answer:

b. 39 days

Explanation:

Working capital days from other sources = Days In Account Receivables + Days in inventory - Days in account payable

Working capital days from other sources = 45 + 30 - 36

Working capital days from other sources = 39