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Phoenix Manufacturing has annual sales of $8.4 million, cost of goods sold of $4.2 million, average inventories of $945,000, and average accounts receivable of $700,000. Assuming all sales are on credit, calculate the firm's operating cycle. a. 155.32 days b. 82.14 days c. 30.48 days d. 112.66 days

Phoenix Manufacturing has annual sales of $8.4 million, cost of goods sold of $4.2 million, average inventories of $945,000, and average accounts receivable of $700,000. Assuming all sales are on credit, calculate the firm's operating cycle. a. 155.32 days b. 82.14 days c. 30.48 days d. 112.66 days

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
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1P: Greene Sisters has a DSO of 20 days. The companys average daily sales are 20,000. What is the level...
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Phoenix Manufacturing has annual sales of $8.4 million, cost of goods sold of $4.2 million, average inventories of $945,000, and average accounts receivable of $700,000. Assuming all sales are on credit, calculate the firm's operating cycle. a. 155.32 days b. 82.14 days c. 30.48 days d. 112.66 days
Transcribed Image Text:Phoenix Manufacturing has annual sales of $8.4 million, cost of goods sold of $4.2 million, average inventories of $945,000, and average accounts receivable of $700,000. Assuming all sales are on credit, calculate the firm's operating cycle. a. 155.32 days b. 82.14 days c. 30.48 days d. 112.66 days
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