Determining the firm cash cycle


Problem:

Suppose that Freddie's Fries has annual sales of $570,000; cost of goods sold of $445,000; average inventories of $16,000; average accounts receivable of $32,000, and an average accounts payable balance of $27,000.

Required:

Question: Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle?

Note: Please show guided help with steps and answer.

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Accounting Basics: Determining the firm cash cycle
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