1 answer

The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods...

Question:

The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover p

The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. 6 days 26 days C 32 days 88 days

Answers

Cash cycle = Receivables payment period + Finished goods inventory turnover period + Raw material inventory turnover period - Payable payment period

= 24 + 23 + 3 - 28

= 22 days

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