Item Beginning Ending Sum Average Inventory 9,780 11,380 21,160 10580 Accounts receivable 4,108 4,938 9,046 4523 Accounts payable 7,636 7,927 15,563 7781.5 Credit sales 89,804 Cost of goods sold 56,384 Calculate the operating and cash cycles. Operating Cycle Calculation: Inventory period+Accounts Receivable Period: Cash Cycle Calculation: Operating Cycle-Accounts Payable Period: Operating Cycle: Inventory Period Average Inventory= 9,780+11,380=21,160/2=$10,580 Inventory Turnover= 56,384/10,580=5.33 Times Inventory Period= 365/5.33= 68 days Receivables Period Average Receivables= Average Receivable: 4,108+4,938=9,046/2=4,523 Receivables turnover= Cost of goods sold 56,386/Average Receivables 4,523=12.46 times Receivables Period= 365/12 =30 days Operating Cycle= Inventory Period 68 days + Receivables Period days 30=98 days Cash Cycle: Average Payables: Accts Payable Beg. 7,636+ end: 7,927=15,563/2=7,781.50 Payables Turnover=Cost of goods sold 56,384/7,781.50=7.25 Times Payables Period=365/7.25= 50 days Cash Cycle=98 days (op cycle)- 50 days payable period=48 days