F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
14th Edition
ISBN: 9781259320576
Author: Ross, Westerfield, Jordan
Publisher: MCG CUSTOM
Question
Book Icon
Chapter 16, Problem 6QP
Summary Introduction

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.

Summary Introduction

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.

Blurred answer
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education