Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A Company shows the following balances on its comparative financial statements: 2021 2020 $11,000 Inventory $12,000 Accounts Receivable $6,300 $6,000 Accounts Payable $8,600 $8,200 The

image text in transcribed
A Company shows the following balances on its comparative financial statements: 2021 2020 $11,000 Inventory $12,000 Accounts Receivable $6,300 $6,000 Accounts Payable $8,600 $8,200 The Company generates Net Sales of $100,000 of which 95% are on credit. Cost of goods sold is $65,000. Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations. Round the final answers to 2 decimal places. Do not include the word "days", but just your numerical answer.) Inventory period in days (round to 2 decimals) Receivable period in days (round to 2 decimals) Operating cycle in days (round to 2 decimals) Payables period in days (round to 2 decimals) The firm is financing its inventory for approximately days. (round to 2 decimals)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions