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You have the following balance sheet and income statement information for Epic Corp.: Line item Amount Accounts receivable (A/R) $2,160 Inventory $4,080 Accounts payable (A/P)
You have the following balance sheet and income statement information for Epic Corp.:
Line item | Amount |
Accounts receivable (A/R) | $2,160 |
Inventory | $4,080 |
Accounts payable (A/P) | $1,110 |
Sales | $6,800 |
Cost of goods sold | $5,440 |
All sales and purchases were on credit. 1. What is the firm's days' sales in inventory (in days)? 2. What is its average collection period (in days)? 3. What is its average payment period (in days)? 4. How long is the operating cycle (in days)? 5. How long is the cash cycle (in days)?
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