Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your...


Your consulting firm was recently hired to improve the performance of ABC Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate.  As one part of your analysis, you want to analyze the firm's cash cycle.  Using the following information and a 365-day year, what is the firm’s operating cycle?





























Average inventory =
$75,000

Annual sales =
$875,000

Annual cost of goods sold =
$525,000

Average accounts receivable =
$160,000

Average accounts payable =
$25,000



Jun 06, 2022
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