Suppose that Michael's Pizzas has annual sales of $630,000; cost of goods sold of $490,000; average inventories of $18,000; average accounts receivable of $34,000, and an average accounts payable balance of $30,000. Assuming that all of Michael's sales are on credit, what will be the firm's cash cycle?
Suppose that Michael's Pizzas has annual sales of $630,000; cost of goods sold of $490,000; average inventories of $18,000; average accounts receivable of $34,000, and an average accounts payable balance of $30,000. Assuming that all of Michael's sales are on credit, what will be the firm's cash cycle?
Chapter17: The Management Of Cash And Marketable Securities
Section: Chapter Questions
Problem 2P
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Question
What will be the firm's cash cycle?
Transcribed Image Text:Suppose that Michael's Pizzas has annual
sales of $630,000; cost of goods sold of
$490,000; average inventories of $18,000;
average accounts receivable of $34,000, and
an average accounts payable balance of
$30,000. Assuming that all of Michael's sales
are on credit, what will be the firm's cash
cycle?
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