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What is the firm present operating cycle

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Reference no: EM132553801

Young Consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm's cash conversion cycle.

Records showed the following:

i. Average inventory = $ 70,000

ii. Annual sales = $650,000

iii. Annual cost of goods sold = $350,000

iv. Average accounts receivable = $150,000

v. Average accounts payable = $ 30,000.

Required

Question 1: Using the information above and a 365-day year, what is the firm's present

a) operating cycle?

b) cash conversion cycle?

Reference no: EM132553801

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