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The Mountain Shop has credit sales of $828,000, average accounts receivable of $64,100 and average accounts payable of $72,700. Inventory is $75,000. The cost of
The Mountain Shop has credit sales of $828,000, average accounts receivable of $64,100 and average accounts payable of $72,700. Inventory is $75,000. The cost of goods sold is equivalent to 68 percent of sales. How long does it take The Mountain Shop to pay its suppliers (Payables Period)? Round to the nearest 0.01. What is the firms operating cycle? Round to the nearest 0.01.What is the firms cash cycle? Round to the nearest 0.01. What are some things the firm can do to speed up (shorten) its cash cycle?
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