DEF had the following Current Assets and Liabilities for 2016, with sales of $1,500,000 and Cost of Goods Sold were 60% of Sales.
Given the following data calculate DEF's Operating Cycle and Cash Conversion Cycle.
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Assets
|
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Liabilities & Owners Equity
|
|
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Cash
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$75,000
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Accounts Payable
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$350,000
|
|
Accounts Receivable
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$375,000
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Loan
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$125,000
|
|
Inventory
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$400,000
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Accruals
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$250,000
|
|
Total Current Assets
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$850,000
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Owners Equity
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$125,000
|
|
|
|
Total Current Liab. & Owners Equity
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$850,000
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