Show the complete solution. IBM is engaged in selling motorcycle spare parts and components is encountering difficulties in collecting its receivables. It takes it an average of 45 days to collect customer receivables. On an average, it also takes 60 days to sell an inventory from the date it was originally purchased. Compute for IBM’ operating cycle.
Show the complete solution. IBM is engaged in selling motorcycle spare parts and components is encountering difficulties in collecting its receivables. It takes it an average of 45 days to collect customer receivables. On an average, it also takes 60 days to sell an inventory from the date it was originally purchased. Compute for IBM’ operating cycle.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Show the complete solution.
IBM is engaged in selling motorcycle spare parts and components is encountering difficulties in collecting its receivables. It takes it an average of 45 days to collect customer receivables. On an average, it also takes 60 days to sell an inventory from the date it was originally purchased.
Compute for IBM’ operating cycle.
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