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.
Industrial Chemical Technology I tutorial all along with the key concepts of Types of Chemical Technicians, Characteristics of chemical industry, Applications in Chemical Production, Chemical technology, Chemical technology equipment
Bonding Theories and Molecular Geometry tutorial all along with the key concepts of Valence bond theory, Molecular orbital theory, Hybridisation, Hybridisation, Resonance hybrids, Formal charge, Shapes of Molecules
Transport Systems tutorial all along with the key concepts of Transport Systems in plants, Xylem, Phloem and Transport system in Animals
online mcat exam preparation course and online mcat tutoring package offered by tutorsglobe are the most comprehensive and customized collection of study resources on the web, offering best collection of mcat practice papers, quizzes, mcat test papers, and guidance.
materials that are employed for slot insulation are leatheroid, mica, glass cloth, and flexible kind of micanite. the category of slot insulation will change as per to the capacity of the machine.
Dielectric failure strength of transformer oil is one of the very much reliable tests for proving the condition of the oil, and so good care is essential in conducting the test, because the slightest trace of contamination or existence of moisture brings down the breakdown value very sharply.
structure-reactivity relationship tutorial all along with the key concepts of acids and bases, strengths of acids and bases
alkynes tutorial all along with the key concepts of types of alkynes, physical properties, spectral properties, preparation, dehydrohalogenation of dihalides, acidity of alkynes
tutorsglobe.com the stomach assignment help-homework help by online digestion tutors
tutorsglobe.com treatment and control assignment help-homework help by online clostridium tetani tutors
tutorsglobe.com tricarboxylic acid cycle assignment help-homework help by online energy and enzymes tutors
tutorsglobe.com viral genetics assignment help-homework help by online virus tutors
Later than the connections and rewinding are completed; it is significant that both the winding and the connections are checked for shorts, grounds, open circuits and accuracy of connections.
tutorsglobe.com classification of fungi assignment help-homework help by online fungi tutors
www.tutorsglobe.com offers nasa model homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
1948639
Questions Asked
3689
Tutors
1447150
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!