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)
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.