Operating cycle and inventory cycle Introduction: Cash cycle: The time between the cash disbursement and cash collection is termed as cash cycle. Operating cycle: The phase, which takes time to complete the process from initial outlay of cash to produce, sell, and receive money from customers are termed as operating cycle.

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Chapter 18, Problem 6QP

Summary Introduction

To determine: Operating cycle and inventory cycle

Introduction:

Cash cycle: The time between the cash disbursement and cash collection is termed as cash cycle.

Operating cycle:

The phase, which takes time to complete the process from initial outlay of cash to produce, sell, and receive money from customers are termed as operating cycle.

Summary Introduction

To discuss: The interpretation on the cash cycle

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