Average length of the firm short-term operating cycle

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Ultra-Cosmetics Corporation has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivables are outstanding an average of 35 days, and the firm receives 40-days credit on its purchases from suppliers. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Estimate the average length of the firm's short-term operating cycle.

Reference no: EM133060856

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