Solution-Calculate abc operating cycle

Calculate abc operating cycle

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Reference no: EM132685569

The recent income statement for ABC Co. shows sales were $4.4 million for the fiscal year, while cost of goods sold was $3.3 million. The firm turns over their inventory 4 times per year. The average collection period is 55 days, while the average payment period is 34 days.

(A) Calculate ABC's operating cycle.

(B) Calculate ABC's cash conversion cycle.

(D) Assume the firm could reduce the age of its inventory by 10%. Calculate how much it would reduce its investment in working capital.

Reference no: EM132685569

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Calculate abc operating cycle

Reference no: EM132685569

Reference no: EM132685569

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