What will be the firm's operating cycle? Suppose that Tucker Industries has annual sales of$6.70 million, cost of goods sold of $2.95 million,average inventories of $1,210,000, and averageaccounts receivable of $670,000. Assuming that all ofTucker's sales are on credit, what will be the firm'soperating cycle?

The operating cycle of a firm is the average time it takes to convert inventory into cash. It is…

Answered: Suppose that Tucker Industries has…

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 Tucker Industries has annual sales of $6.70 million, cost of goods sold of $2.95 million, average inventories of $1,210,000, and average accounts receivable of $670,000. Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle?