Describe a typical business operating cycle.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

I need answer of this accounting questions solution

Alanood Company wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years the company's gross profit rate averaged 36%. The following information for the years first quarter is available from its records: January 1 beginning inventory $150,130 Purchases $472,600 Purchase returns $6,525 Transportation in $3,450 Sales $595,575 Sales returns $4,725 Use the gross profit method to prepare an estimate of the company's March 31 inventory.

Please solve this general accounting question

Answer 2

Question

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Answer 6

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.

Answer 7

Chapter 3, Problem 1Q

To determine

Describe a typical business operating cycle.

Answer 8

Expert Solution & Answer

Explanation of Solution

Operating cycle:

The operating cycle is the period of time which is required to meet the initial outlay of cash used to purchase, produce, and sell inventory to customers and collect cash from the customer.

A typical business operating cycle:

The operating cycle starts from the initial outlay of cash used for the purchase of the raw materials, production, selling of the produced goods for cash and credit to the customers and cash is collected for the goods that are sold to customers on account and is used to purchase the raw materials again, thus this is a typical business operating cycle.