Martinez Company has a cash cycle of 45 days, an operating cycle of 65 days, and an inventory period of 30 days. The company's cost of goods sold is $425,000, and credit sales are $680,000. Calculate the company's average balance in accounts payable and accounts receivable.

Martinez Company has a cash cycle of 45 days, an operating cycle of 65 days, and an inventory period of 30 days. The company's cost of goods sold is $425,000, and credit sales are $680,000. Calculate the company's average balance in accounts payable and accounts receivable.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

Kindly help me with accounting questions

Martinez Company has a cash cycle of 45 days, an operating cycle
of 65 days, and an inventory period of 30 days. The company's cost
of goods sold is $425,000, and credit sales are $680,000. Calculate
the company's average balance in accounts payable and accounts
receivable.

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