Consider the following financial statement Information
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Consider the following financial statement Information

Topic 4

Chapter 26: Questions and Problems 6: Calculating Cycles

Consider the following financial statement Information for the Bulldog Icers Corporation:

Calculate the operating and cash cycles. How do you interpret your answer?

Hint
Accounts and FinanceQuestions and Problems 6: The operating cycle is the inventory period plus the receivables period. The inventory turnover and inventory period are: Inventory turnover = COGS/Average inventory Inventory turnover = $140,382/(($17,385 + 19,108/2] Inventory turnover = 7.6936 times Inventory period = 365 days/Inventory turnover Inventory period = 365 days/7.6936 Inventory period = 4...

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