A company has the following Accounting data: Annual sales = $5,000,000 ⚫ Cost of goods sold = $3,000,000 Average accounts receivable = $600,000 Average inventory = $750,000 Average accounts payable = $400,000 Raw material costs = 40% of COGS Credit sales = 75% of total sales Calculate the cash operating cycle.

A company has the following Accounting data: Annual sales = $5,000,000 ⚫ Cost of goods sold = $3,000,000 Average accounts receivable = $600,000 Average inventory = $750,000 Average accounts payable = $400,000 Raw material costs = 40% of COGS Credit sales = 75% of total sales Calculate the cash operating cycle.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 3MC

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