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)
https://brainmass.com/business/accounting/acme-corporation-calculate-operating-cash-cycles-3917
Attachments
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.
$2.19