Question 5 (20 marks)

You have collected the following information for the Acienda Company

Item

Beginning

Ending

Inventory

$5,000

$7,000

Accounts Receivable

1,600

2,400

Accounts Payable

2,700

4,800

Company sales for the year ended were $50,000, and its cost of goods sold was $30,000.

1. What are the companies Cash and Operating cycles?
2. In a brief paragraph provide some recommendations as to how the company can improve upon these figures.