Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000; average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.) a. 37.26. b. 60.86. c. 1.82. d. 13.66.
Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000; average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.) a. 37.26. b. 60.86. c. 1.82. d. 13.66.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Suppose that Freddie's Fries has annual sales of $620,000; cost of goods sold of $495, 000; average inventories of $21,000;
average accounts receivable of $37,000, and an average accounts payable balance of $32, 000. Assuming that all of Freddie's
sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)
a. 37.26.
b. 60.86.
c. 1.82.
d. 13.66.
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