Using the following quarterly data from a recent company report, and assuming a $7$ day working week, calculate

the cash to cash cycle time for the company.

Net Revenue

Cost of Revenue

$14,000$

$12,000$

Production Inventory

Work in Progress

$3,500$

$1,250$

Finished Goods

Accounts Receivable

$1,750$

$2,650$

Accounts Payable

$2,750$

What does this calculated cash to cash cycle time indicate to you? Explain the key contributing factors and

outline some ideas to help address any issues you observe.

CtC $=$ ARd $+$ Id $-$ APd

Sd$=$ S$/$d

ARd $=$ AR$/$Sd

Cd$=$SdCD

Id$=$I$/$Cd

APd $=$ AP$/$Cd