To determine: Operating cycle and cash cycle.
Introduction:
Cash cycle is the number of days, which passes until the company collects the cash from a sale. It is measured at the time when the company pays for the inventory.
Operating cycle is an average period that is required for a company to make an initial outlay of cash for making goods, sell the produced goods, and receives money from customers in exchange for the goods.
To discuss: The interpretation of the cash cycle.
Introduction:
Cash cycle is the number of days, which passes until the company collects the cash from a sale. It is measured at the time when the company pays for the inventory.
Operating cycle is an average period that is required for a company to make an initial outlay of cash for making goods, sell the produced goods, and receives money from customers in exchange for the goods.
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F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
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