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Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly

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Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. They complete their typical case in 6 months or less and collect from the typical client within 1 additional month. Duration of Operating Cycle b. Johnston's Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash, and any receivables are generally paid by the end of the following month. Duration of Operating Cycle c. Mortondo's is a women's clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit, and the typical customer pays within 1 month of sale. Duration of Operating Cycle d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Duration of Operating Cycle Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. They complete their typical case in 6 months or less and collect from the typical client within 1 additional month. Duration of Operating Cycle b. Johnston's Market specializes in fresh 6 months 1. All merchandise must be sold within one week of purchase. Almost all sales are for cash, and any rece enerally paid by the end of the following month. 7 months Duration of Operating Cycle 1 year c. Mortondo's is a women's clothing store in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. 1 month Je on credit, and the typical customer pays within 1 month of sale. Duration of Operating Cycle d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Duration of Operating Cycle Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. They complete their typical case in 6 months or less and collect from the typical client within 1 additional month. Duration of Operating Cycle b. Johnston's Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash, and any receivables are generally paid by the end of the following month. Duration of Operating Cycle c. Mortondo's is a women's clothing store 1 week n high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Je on credit, and the typical customer pays within 1 month of sale. 12 weeks Duration of Operating Cycle 1 year d. Trees Inc. grows Christmas trees and month Various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Duration of Operating Cycle Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. They complete their typical case 6 months or less and collect from the typical client within 1 additional month. Duration of Operating Cycle b. Johnston's Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchas Almost all sales are for cash, and any receivables are generally paid by the end of the following month. Duration of Operating Cycle c. Mortondo's is a women's clothing store specializing in high-style merchandise. Merchandise spends an average 7 months on the rack following purchase. Most sales are on credit, and the typical customer pays within 1 month o sale. Duration of Operating Cycle d. Trees Inc. grows Christmas trees and 1 year various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. 7 months Duration of Operating Cycle 8 months 2 years Exercise 4-54 Operating Cycle and Current Receivables For each of the businesses described below, indicate the length of the operating cycle. a. Dither and Sly are attorneys-at-law who specialize in federal income tax law. They complete their typical case in 6 months or less and collect from the typical client within 1 additional month. Duration of Operating Cycle b. Johnston's Market specializes in fresh meat and fish. All merchandise must be sold within one week of purchase. Almost all sales are for cash, and any receivables are generally paid by the end of the following month. Duration of Operating Cycle c. Mortondo's is a women's clothing store specializing in high-style merchandise. Merchandise spends an average of 7 months on the rack following purchase. Most sales are on credit, and the typical customer pays within 1 month of sale. Duration of Operating Cycle d. Trees Inc. grows Christmas trees and sells them to various Christmas tree lots. Most sales are for cash. It takes 6 years to grow a tree. Duration of Operating Cycle 1 year Need more data 6 years + one day 6 years

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