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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