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To have an operating cycle of 30 days means it takes, on average, about 30 days to O purchase inventory and sell it on credit.
To have an operating cycle of 30 days means it takes, on average, about 30 days to O purchase inventory and sell it on credit. O go from the cash outflow from buying inventory to the cash inflow from selling it on account and receiving payment. O expend cash to purchase inventory and then collect cash from selling it. O sell an item on credit and collect the account
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