A trading company makes all its sales and purchases on credit.

How will the length of its working capital cycle normally be calculated?

A   Collection period for receivables plus inventory turnover period plus period of credit taken from suppliers.
B   Collection period for receivables plus inventory turnover period minus period of credit taken from suppliers.
C   Collection period for receivables plus period of credit taken from suppliers.
D  Average time from date of purchase of goods to the receipt of cash from the sale of those goods.

B

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