Question
The following company information is available: Average accounts receivable $ 200,000 Average inventories 130,000 Average accounts payable 140,000 Net sales 10,000,000 Cost of goods sold
The following company information is available:
Average accounts receivable $ 200,000
Average inventories 130,000
Average accounts payable 140,000
Net sales 10,000,000
Cost of goods sold 1,800,000
Purchases 1,140,000
What is the company's operating cycle (in days)? (Assume all sales are made on credit. Round your answer to the nearestday.)
Step by Step Solution
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To calculate the companys operating cycle we need to determine the average number of days it takes f...
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Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
