Question
Consider the following information: Suppliers' payment period
Consider the following information:
Suppliers' payment period 40 days
Receivables' collection period 40 days
Finished goods holding period 15 days
Work - in progress holding period 10 days
Raw materials inventory holding period 20 days
a) what is the operating cycle
b) what is the cash cycle?
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
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