Introduction to Operating Cash Cycle
While assessing the liquidity of a business, it is significant to be aware of the operating cash cycle (OCC). In the matter of a business which purchases goods on credit for consequent resale on credit (for instance, a wholesaler), this might be described as the time period among the outlay of cash essential for the purchase of inventories and the final receipt of cash from the credit customer.
Figure: depicts that payment for inventories obtained on credit takes place sometime after those inventories have been purchased and, so no immediate cash outflow occurs from the purchase. Likewise, cash receipts from credit customers will take place sometime after the sale is made. So, there will be no immediate cash inflow like a result of the sale. The operating cash cycle (OCC) is the time period among the payment made to the supplier for goods and the cash that received from the credit customer. However Figure 7.2 depicts the position for a wholesaling business, the definition of the operating cash cycle (OCC) can simply be adapted for other types of businesses, like manufacturers and retailers.
The operating cash cycle (OCC) is significant because it has an important affect on the financing needs of the business. Generally speaking, the longer the cycle, the greater the financing needs of the business and the greater the financial risks. Because of this reason, a business may want to decrease the OCC to the minimum possible period.
For the kind of business which buys inventories and then sells them on credit, the operating cash cycle (OCC) can be computed from the financial statements through using specific ratios.
The calculation is as displayed in Figure as follow:
Figure: calculating the operating cash cycle
Latest technology based Financial Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Operating Cash Cycle homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Operating Cash Cycle, project ideas and tutorials. We provide email based Operating Cash Cycle homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Operating Cash Cycle. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of Operating Cash Cycle. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
The major difficulty in drying out a transformer is not drying the oil- this is fairly easily done through passing it two times or three times by an appropriate filter- it is the removal of moisture absorbed through the windings.
qualified and apt tutors are available 24/7 to accomplish your essay with top-rated operations management essay writing assignment help.
www.tutorsglobe.com offers Various Programming Languages homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
Activity Based Costing method is of recent origin and is basically concerned with apportionment of overheads in an organisation having results that different in complexity and volume of production.
tutorsglobe.com energy and enzymes assignment help-homework help by online general microbiology tutors
Transfer of Heat and Heat Capacities tutorial all along with the key concepts of Conduction of Heat, Convection of Heat through Liquids and Gases, Radiation of Heat, Heat capacity, Specific Heat Capacity, Heat capacity of a substance and Newton's Law of Cooling
www.tutorsglobe.com offers Go to in Disciplined Manner homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
www.tutorsglobe.com offers reactions of substituted benzenes homework help, reactions of substituted benzenes assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
types of solution tutorial all along with the key concepts of types of solution according to their saturation ratio, types of solutions as suspensions and colloids, ways of deducing concentration of solution
a computer can be described like an electronic data processing device, able of accepting data, applying a prearranged set of instructions to the data and depicting in some way or form.
theory and lecture notes of estimating the population proportion all along with the key concept of estimating the population proportion. tutorsglobe offers homework help, assignment help and tutor’s assistance on estimating the population proportion.
Nervous system and sense organs of Astacus tutorial all along with the key concepts of reproduction of Astacus, Significance of crustaceans, Subphylum Uniramia and Phylum Onychophora
tutorsglobe.com product differentiation assignment help-homework help by online characteristics of monopolistic competition tutors
tutorsglobe.com characteristics of trematoda assignment help-homework help by online parasitic helminthes tutors
if the items on the statement of financial position are listed randomly along with assets at the top of the statement and equity and liabilities beneath, it can be confusing, although it may consist of all of the information and be mathematically accurate.
1940846
Questions Asked
3689
Tutors
1489121
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!