You have collected the following information for the Acienda Company Item Inventory Accounts Receivable Accounts Payable Beginning $5,000 1,600 2,700 Ending $7,000 2.400 4,800

Company sales for the year ended were $50,000, and its cost of goods sold was $30,000. a. What are the companies Cash and Operating cycles? b. In a brief paragraph provide some recommendations as to how the company can improve upon these figures.

Beginning Item Inventory Accounts Receivable Accounts Payable $5,000 1.600 2,700 Ending $7,000 2,400 4.800