EBK INTRODUCTION TO MANAGERIAL ACCOUNTI
EBK INTRODUCTION TO MANAGERIAL ACCOUNTI
8th Edition
ISBN: 9781260190229
Author: BREWER
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 14, Problem 11F15
To determine

Concept Introduction:

Operating Cycle

  • Operating Cycle is the time taken for the entire Procure to Pay (Purchase) and Order to Cash (Sale) process to complete, with respect to goods and services and money received for the same.
  • Operating Cycle is used to determine the funds required to finance operations of a business.
  • Operating Cycle may be considered the sum of the average sale period and average collection period
  •   Operating Cycle = Average Sale Period + Average Collection Period

To Compute:

Company’s operating cycle.

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EBK INTRODUCTION TO MANAGERIAL ACCOUNTI

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