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You have the following balance sheet and income statement information for Epic Corp.: Balance sheet $ Accounts receivable (A/R) 2,200 Inventory 3,400 Accounts payable (A/P)
You have the following balance sheet and income statement information for Epic Corp.:
Balance sheet | $ |
Accounts receivable (A/R) | 2,200 |
Inventory | 3,400 |
Accounts payable (A/P) | 870 |
Income statement | $ |
Sales | 6,800 |
Cost of goods sold (COGS) | 5,440 |
All sales and purchases were on credit. 1. How long is the days' sales in inventory (in days)? 2. How long is the average collection period (in days)? 3. How long is the average payment period (in days)? 4.How long is the cash cycle (in days)?
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