The Operating Cycle and Cost Cycle 1. On Eastern Printing Machines Co.'s income statement of 20X1, the cost of goods sold and the credit sales are $200 million and $240 million, respectively. The following data are from its balance sheets. ($ millions) Dec. 31, 20X1 Dec. 31, 20X2 Inventory $40 $60 Accounts receivable 30 50 Accounts payable 10 30 a. How many days is Eastern Printing Machines' operating cycle? b. How many days is Eastern Printing Machines' cash cycle?

The Operating Cycle and Cost Cycle 1. On Eastern Printing Machines Co.'s income statement of 20X1, the cost of goods sold and the credit sales are $200 million and $240 million, respectively. The following data are from its balance sheets. ($ millions) Dec. 31, 20X1 Dec. 31, 20X2 Inventory $40 $60 Accounts receivable 30 50 Accounts payable 10 30 a. How many days is Eastern Printing Machines' operating cycle? b. How many days is Eastern Printing Machines' cash cycle?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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