Operating Cycle. Based on your answer to Problem 2.8, what is the River Company’s operating cycle in 20X6 if it is assumed that the average collection period is 42 days? Problem 2.8 Inventory. On...

Operating Cycle. Based on your answer to Problem 2.8, what is the River Company’s operating cycle in 20X6 if it is assumed that the average collection period is 42 days?

Problem 2.8

Inventory. On January 1, 20X6, the River Company’s beginning inventory $400,000. During 20X6, River purchased $1,900,000 of additional inventory. On December 31, 20X6, River’s ending inventory was $500,000. (a) What is the inventory turnover and the age of inventory for 20X6? (b) If the inventory turnover in 20X5 was 3.3 and the average age of the inventory was 100.6 days, evaluate the results 20X6.