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Acme Corporation: Calculate Operating & Cash Cycles

Prob 7
Consider the following financial statement information for the Acme Corporation:

Item Beginning Ending
Inventory $120,000,000 $105,000,000
Accounts receivable 80,000,000 84,000,000
Accounts payable 75,000,000 79,000,000
Net sales $800,000,000
Cost of goods sold 550,000,000

Calculate the operating and cash cycles.
(Please see attachment for full question)

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Solution Preview

For solution please refer to the attached file 'Posting 3917.xls'.

Consider the following financial statement information for the Acme Corporation:

Item Beginning Ending Average
Inventory $120,000,000 $105,000,000 112,500,000.00
Accounts receivable 80,000,000 84,000,000 ...

Solution Summary

In an Excel format, the solution explains every calculation to arrive at the the operating and cash cycles.

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