How long does merchandise stay around before it is sold

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Question - Following info was collected for Jake Co

Item. Beginning. Ending

Inventory. 5,000. 7,000

Accts. Rec. 1,600. 2,400

Acct. Payable. 2,700. 4,800

Credit sale for year ended 50,000 and cost of goods sold was 30,000

1. How long does it take for Jake Co. to collect on its receivable?

2. How long does merchandise stay around before it is sold?

3. How long does it take Jake to pay its bills?

4. What is Jake operating cycle?

5. What is Jake cash cycle?

Reference no: EM132547122

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