The firm’s operating cycle = number of days in Inventory + number of days accounts receivable
Where,
Average number of days in Inventory = 90 days
Number of days accounts receivable =60 days
Therefore,
Operating cycle = 90 + 60 = 150 days
Therefore firm’s operating cycle is 150 days
american products is concerned about managing cash efficently on the average inventories hsve an age of...
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