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)

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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Financial accounting question

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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