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A company has the following debts sales $3,000,000 costing sales = $1,500,000 average receivables = $500,000 average inventory = $300,000 average payable = $200,000 The material cost represent 50% of the cost of sales. Credit sales account for 80% of the total sales. Calculate the cash operating cycle

A company has the following debts sales $3,000,000 costing sales = $1,500,000 average receivables = $500,000 average inventory = $300,000 average payable = $200,000 The material cost represent 50% of the cost of sales. Credit sales account for 80% of the total sales. Calculate the cash operating cycle

Intermediate Financial Management (MindTap Course List)
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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A company has the following debts sales $3,000,000 costing sales = $1,500,000 average receivables = $500,000 average inventory = $300,000 average payable = $200,000 The material cost represent 50% of the cost of sales. Credit sales account for 80% of the total sales. Calculate the cash operating cycle
Transcribed Image Text:A company has the following debts sales $3,000,000 costing sales = $1,500,000 average receivables = $500,000 average inventory = $300,000 average payable = $200,000 The material cost represent 50% of the cost of sales. Credit sales account for 80% of the total sales. Calculate the cash operating cycle
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