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Suppose that Timothy allows his buyers to pay within 2 days from the date of sale. How will this change the operating cycle? Operating Cycle
Suppose that Timothy allows his buyers to pay within 2 days from the date of sale. How will this change the operating cycle? Operating Cycle = Days of Inventory + Days of Receivable = 3 + 2 = 5 days Determine the operating cycle of Carl Company: Average age of inventory = 10 days Average payment period = 15 days Average age of receivables = 20 days
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