Reference no: EM132996245
Question - The following data available for Mt Warnings Ltd.
Account Beginning balance Ending Balance Use/source of cash
Accounts payable 22,400 26,500
Inventory 68,600 65,300
Long term debts 115,500 135,600
Common stock 250,400 235,900
Required -
a. Calculate and identify the source of cash or the use of cash for each account by filling into the column next to the ending balance.
b. Assume the following
beginning balance of accounts receivable is $25,400
ending balance of accounts receivable of $23,800
total revenue (all sales are on credit) is $247,500
total cost of goods sold is $ 175,000
Calculate the operating cycle and cash cycle and interpret the outcomes.