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Given the following information, calculate the cash cycle

Finance

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Given the following information, calculate the cash cycle. Use average inventory, receivables, and payables in your calculations.

Credit sales = $1,000,000

Cost of goods sold = $750,000

Beginning balances:

Inventory = $300,000

Accounts Receivable = $280,000

Accounts Payable = $260,000

 

Ending balances:

Inventory = $280,000

Accounts Receivable = $250,000

Accounts Payable = $240,000

 

Multiple choice:

a: 238days

b 141days

c 261days

d 116days

e 97days