Provide answer financial accounting Suppose that Dunn Industries has annual sales of $2.3million, cost of goods sold of $1,650,000, averageinventories of $1,116,000, and average accountsreceivable of $750,000. Assume that all of Dunn?s salesare on credit. What will be the firm?s operating cycle?

Step 1: Define Operating cycleOperating cycle is given as the time taken to convert the inventory to…

Answered: Suppose that Dunn Industries has annual…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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Suppose that Dunn Industries has annual sales of $2.3 million, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assume that all of Dunn?s sales are on credit. What will be the firm?s operating cycle?