Question
A company has annual sales revenues of $48 million. The company earns a constant gross margin of 40% on sales. All sales and purchases are
A company has annual sales revenues of $48 million. The company earns a constant gross margin of 40% on sales. All sales and purchases are on credit and are evenly distributed over the year.
The following are maintained at a constant level throughout the year:
Inventory$8 million
Trade receivables $10 million
Trade payables$5 million
What is the company's cash operating cycle to the nearest day?
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Managerial Accounting
Authors: Wendy M. Tietz, Louis Beaubien, Karen W. Braun
3rd Canadian edition
134460826, 134460820, 9780134524818 , 978-0134526270
