Suppose that Dunn Industries has annual sales of \$4.05 million, cost of goods sold of \$1,610,000, average inventory of \$1,076,000, and average accounts receivable of \$710,000. Assume that all of Dunn's sales are on credit. What will be the firm's operating cycle?

Suppose that Dunn Industries has annual sales of \$4.05 million, cost of goods sold of \$1,610,000, average inventory of \$1,076,000, and average accounts receivable of \$710,000. Assume that all of Dunn's sales are on credit. What will be the firm's operating cycle?

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 15MC: Suppose the firm makes the change but its competitors react by making similar changes to their own...

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Question

What will be the firm's operating cycle for this accounting question?

Suppose that Dunn Industries has annual sales of
\$4.05 million, cost of goods sold of \$1,610,000,
average inventory of \$1,076,000, and average
accounts receivable of \$710,000. Assume that all of
Dunn's sales are on credit. What will be the firm's
operating cycle?

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