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2. The Cash Cycle can be a little confusing and some text books use different methodologies for calculating the three elements of the Cash Cycle.
2. The Cash Cycle can be a little confusing and some text books use different methodologies for calculating the three elements of the Cash Cycle. For your convenience the formulas area) Inventory being Current Inventory / Operating Revenue 365 = ???? b) Accounts Receivables being Debtors / Operating Revenue * 365 2 Accounts Payables being Creditors / Operating Revenue 365 = ??? Note that you still need to work out the cash cycle from these calculations. 2. The Cash Cycle can be a little confusing and some text books use different methodologies for calculating the three elements of the Cash Cycle. For your convenience the formulas area) Inventory being Current Inventory / Operating Revenue 365 = ???? b) Accounts Receivables being Debtors / Operating Revenue * 365 2 Accounts Payables being Creditors / Operating Revenue 365 = ??? Note that you still need to work out the cash cycle from these calculations
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