Granite Gear Co. provided the following information. Calculate (a) the operating cycle and (b) the cash conversion cycle: Item Amount Average Inventory $35,000 Average Accounts Receivable $40,000 Average Accounts Payable $25,000 Sales $240,000 Cost of Goods Sold (COGS) $150,000

Granite Gear Co. provided the following information. Calculate (a) the operating cycle and (b) the cash conversion cycle: Item Amount Average Inventory $35,000 Average Accounts Receivable $40,000 Average Accounts Payable $25,000 Sales $240,000 Cost of Goods Sold (COGS) $150,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Hi experts please answer the general accounting question

Granite Gear Co. provided the following information. Calculate (a) the
operating cycle and (b) the cash conversion cycle:
Item
Amount
Average Inventory
$35,000
Average Accounts Receivable $40,000
Average Accounts Payable
$25,000
Sales
$240,000
Cost of Goods Sold (COGS)
$150,000

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Use the following information to determine the amount of cash paid for merchandise. Show calculations. Cost of merchandise sold per income statement 262,000 Accounts payable balance change during period (19,000) Inventory balance change during period 5,000