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8 . 4 Statement Presentation and Management of Receivables To have an operating cycle of 3 0 days means it takes, on average, about 3
Statement Presentation and Management of Receivables
To have an operating cycle of days means it takes, on average, about days to
purchase inventory on account and sell it on credit.
purchase inventory on account and then collect cash from selling it
go from the cash outflow from buying inventory to the cash inflow from selling it on account and receiving payment.
sell an item on credit and collect the account.
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