Banking · Working Capital Assessment
M/s. PharmaChem has a gross Operating Cycle (OC) breakdown as follows: Raw Material Holding 60 days, Work-in-Progress 15 days, Finished Goods 30 days, and Receivables Collection 15 days. The company gets a Creditors Payment Period of 45 days from its suppliers. What is the total number of days in the Net Operating Cycle, and what is the maximum loan tenure the bank can sanction if the facility is tailored to exactly one complete Net Operating Cycle?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Net Operating Cycle Days: 120 days; Maximum Loan Tenure: 120 days.
- 2Net Operating Cycle Days: 165 days; Maximum Loan Tenure: 165 days.
- 3Net Operating Cycle Days: 75 days; Maximum Loan Tenure: 75 days.✓
- 4Net Operating Cycle Days: 75 days; Maximum Loan Tenure: 120 days.
Correct answer
Net Operating Cycle Days: 75 days; Maximum Loan Tenure: 75 days.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Working Capital Assessment MCQs →Want more practice questions on Working Capital Assessment?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Working Capital Assessment