In: Finance
Given the following information, calculate the cash cycle. Use
average inventory, receivables, and payables in your
calculations.
Credit sales = $1,000,000
Cost of goods sold = $750,000
Beginning balances:
Inventory = $300,000
Accounts Receivable = $280,000
Accounts Payable = $260,000
Ending balances:
Inventory = $280,000
Accounts Receivable = $250,000
Accounts Payable = $240,000
a)141 days
b)261 days
c)97 days
d)116 days
e)238 days