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ABC Wholesalers sells products exclusively to XYZ Retailer. XYZ Retailer buys exclusively from ABC Wholesalers. ABC Wholesalers has a receivables period of 44 days, an inventory period of 8 days, and a payables period of 63 days. XYZ Retailer has an inventory period of 15 days, a receivables period of 22 days, and a payables period of 44 days. Which one of the following statement is correct given this information?

Choose one answer.

a. XYZ Retailer has an operating cycle of 81 days.

b. It takes XYZ Retailer less time to collect payment on a sale than it does for the firm to sell its inventory.

c. ABC Wholesalers is financing 100 percent of XYZ Retailers operating cycle.

d. ABC Wholesalers has a cash cycle of 11 days.

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