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Determination of an Accounts Receivables Cycle

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What is the accounts receivable cycle?

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Solution Summary

This formatted MS Word file contains calculations that can be used to determine a firm's accounts receivables cycle.

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See the attached file.

For your convenience, I have attached a formatted MS Word file containing the information posted below.

Accounts Receivable Cycle

The accounts receivable cycle is a measurement of the length of time that it takes for a business to convert a sale into cash. In other words, how long does it take a business to collect on an account receivable?

The following diagram depicts the cycle:
...

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