Operating Cycle Questions 1) Calculate the Operating Cycle based on the following information Assets Cash 12,000,000 6.000,000 4,000,000 12,000,000 Other Expenses/Taxes 34,000,000 Net Income Income Stafement Sales (50% Credit) Cost of Sales Selling, General & Admin. 40,000,000 15,000,000 10,000,000 5,000,000 0,000,000 Inventories (average) Net fixed assets Total Assets Liabilties and Equit Accounts Payable Sal., Ben., Wage Pay.5,000.000 Total Liabilities Stockholder's Equity Liabilities and Equity 4,000,000 9,000,000 25,000,000 34,000,000 2) Calculate the Operating Cycle based on the following information Income Statement Sales (50% Credit) Cost of Sales Selling, General & Admin. Other Expenses/Taxes Net Income Assets Cash Inventories (average) Net fixed assets Total Assets 7,500,000 4,500,000 6,000,000 8,000,000 26,000,000 25,000,000 12,000,000 8,000,000 1000,000 4,000,000 Liabivties and Accounts Payable Sal., Ben., Wage Pay Total Liabilities Stockholder's Equity Liabilities and Equity 5,000,000 2,000,000 4,000,000 26,000,000 3) What is the effective annual cost of foregoing a discount with the terms 1/10, net 45? 4) What is the effective annual cost of foregoing a discount with the terms 2/15, net 60