A. The operating cycle is the length of time it takes to convert an investment of cash in inventory back into cash (through collections of sales). It is calculated as the days sales in inventory + days sales in receivables. In addition to the average merchandise inventory, we also need to know the daily cost of goods sold in order to calculate the days sales in inventory.

B. The operating cycle is the length of time it takes to convert an investment of cash in inventory back into cash (through collections of sales). It is calculated as the days sales in inventory + days sales in receivables. This information will not allow us to calculate the operating cycle.

C. The operating cycle is the length of time it takes to convert an investment of cash in inventory back into cash (through collections of sales). It is calculated as the days sales in inventory + days sales in receivables. This information will not allow us to calculate the operating cycle.

D. The operating cycle is the length of time it takes to convert an investment of cash in inventory back into cash (through collections of sales). It is calculated as the days sales in inventory + days sales in receivables. Both of these amounts can be calculated from the information provided in this choice.