Consider the following financial statement information for the Newk Corporation: Item Inventory Beginning $ 11,400 Accounts receivable 6,400 Accounts payable 8,600 Net sales $ 94,000 Cost of goods sold 74,000 Ending $ 12,400 6,700 9,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Consider the following financial statement information for the Newk Corporation: Item Inventory Beginning $ 11,400 Accounts receivable 6,400 Accounts payable 8,600 Net sales $ 94,000 Cost of goods sold 74,000 Ending $ 12,400 6,700 9,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider the following financial statement information for the Newk Corporation:
Item
Inventory
Beginning
$ 11,400
Accounts receivable
6,400
Accounts payable
8,600
Net sales
$ 94,000
Cost of goods sold
74,000
Ending
$ 12,400
6,700
9,000
Calculate the operating and cash cycles. (Use 365 days a year. Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
Operating cycle
Cash cycle
85.99
days
41.53
days
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