OPERATING CYCLE. A list of businesses is presented below:

REQUIRED:
Match each business with a description of the operating cycle for that business. l01

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BUSINESS 1. Appliance store 2. Clothing store 3. Electric utility 4. Evergreen nursery 5. Fast-food restaurant OPERATING-CYCLE DESCRIPTION a) Very short-customers typically pay cash, and inventory is often held less than 1 day. b) A few months-merchandise is typically on hand for several weeks, and some customers may accept credit. c) More than 1 year-merchandise may be in inven- tory for several months, and most customers will pay for purchases after 1 or 2 years. d) Several years-a number of years are required to make merchandise ready to sell. Customers proba- bly pay cash for most items. e) A few months-customers pay monthly. The current assets used to provide customer services are con- sumed within a few months.