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The following company has the following data: Balance sheet Beginning inventory 25,0000 Ending inventory 18,000 Beginning Account Receivable 7,500 Ending Account Receivable 5,000 Income Statement
The following company has the following data:
Balance sheet
Beginning inventory | 25,0000 |
Ending inventory | 18,000 |
Beginning Account Receivable | 7,500 |
Ending Account Receivable | 5,000 |
Income Statement
Net Sales Revenue | 120,000 |
Cost of Goods Sold | 70,000 |
Accordingly, calculate the Cash Gap and illustrate:
If the suppliers need to be paid after 45 days, is the company need a source of finance? If yes, the facilities needed to cover how many days?
How the company can cover the Gap?
What is the point of strength and weakness in the company operating cycle?
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