Operating cycle: Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer. The Operating cycle mainly includes following activities: -Purchases from the supplier (either cash or on account) -Payment to suppliers -Inventory -Sales (either cash or on account) -Collection from customer The formula to calculate the operating cycle is as follows: Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period To Indicate: The effect of the operating cycle on the difference in the prices of given stores.

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Answer 1

Question

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

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Answer 2

Question

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Expert Solution & Answer

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Answer 3

Question

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Expert Solution & Answer

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Answer 4

Question

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Answer 6

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Answer 7

Chapter 4, Problem 63.1C

To determine

Concept Introduction:

Operating cycle:

Operating cycle is the chain of business activities performed in an organization. An organization can be manufacturing, servicing of merchandising type. For a merchandiser, the main business activities are the purchase, payment to the supplier, sales, and receipts from the customer. Hence the operating cycle of a merchandiser is limited as compared with the operating cycle of a manufacturer.

The Operating cycle mainly includes following activities:

-Purchases from the supplier (either cash or on account)

-Payment to suppliers

-Inventory

-Sales (either cash or on account)

-Collection from customer

The formula to calculate the operating cycle is as follows:

Net Operating Cycle = Inventory Period + Accounts Receivable Period − Accounts Payable Period

To Indicate:

The effect of the operating cycle on the difference in the prices of given stores.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 4 - Prob. 1DQ Ch. 4 - Prob. 2DQ Ch. 4 - The Sarbanes-Oxley Act increased top managements...Ch. 4 - Prob. 4DQ Ch. 4 - Prob. 5DQ Ch. 4 - Prob. 6DQ Ch. 4 - Prob. 7DQ Ch. 4 - Prob. 8DQ Ch. 4 - Prob. 9DQ Ch. 4 - Prob. 10DQ

Solution Summary: The author explains that an operating cycle is the chain of business activities performed in an organization.

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