Tuesday
January 27, 2015

Homework Help: Finance

Posted by James on Saturday, June 7, 2014 at 3:16pm.

Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished foods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers.
Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

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