Estimate average length of firm''s short-term operating

Estimate average length of firm''s short-term operating cycle

Reference no: EM131415100

Pretty Lady Cosmetic Products has an average production process time of forty days. Finished goods are kept on hand for an average of fifteen days before they are sold. Accounts receivable are outstanding an average of thirty-five days, and the firm receives forty 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?

Reference no: EM131415100

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