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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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