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    Acme Corporation: Calculate Operating & Cash Cycles

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    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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    https://brainmass.com/business/accounting/acme-corporation-calculate-operating-cash-cycles-3917

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    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.

    $2.19

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