1. Excel Precision has an operating cycle of 105 days. If the average accounts payable is $200,000 and the cost of goods sold is $925,000, what will be Excel’s cash cycle?
2. Excel Precisions has annual sales of $4.95 million, all of which are on credit, and cost of goods sold of $3.55 million. If average inventories are $1.75 million, and average accounts receivable are $1.15 million, what will be Excel’s operating cycle?
3. On average, it takes five days for a customers’ payment to arrive, five more days for those payments to be processed and deposited, and two more days until the cash can be used. What is the collection float for Excel Precision Inc.? ?