United States Steel Corporation has a receivables collection period of thirty three days, a days inventory...

United States Steel Corporation has a receivables collection period of thirty three days, a days inventory of sixty-eight days, and a payables period of forty-nine days. How long is its funding gap?

a.	-14 days
b.	52 days
c.	84 days
d.	150 days

Solutions

Expert Solution

Funding Gap = Average Days Inventory + average Accounts receivables days - Average payable days

= 68 + 33 - 49

= 52 Days

So, the correct answer is 52 days

jeff jeffy answered 2 years ago

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