Determine cash to cash cycle time for this organization

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Reference no: EM132083749

Consider the following metrics:

Sales over the past 60 days = $10,000,000

Current AR balance = $750,000

Cost of Goods Sold (same period) = $6,000,000

Current Value of Inventory = $1,000,000

Current balance of AP = $250,000

Determine the cash to cash cycle time for this organization. A corporate goal is limit the time of purchase of raw materials and receipt of payment for the final product to under 4 business weeks. Is this company meeting that goal?

Reference no: EM132083749

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