The following information is reported by Acme Corporation.
$\begin{array}{ll}
\text { Cost of goods sold } & \$ 350,000 \
\text { Average inventory balance } & 35,000 \
\text { Average accounts receivable balance } & 65,000 \
\text { Sales (all on account) } & 325,000 \
\text { Average accounts payable balance } & 45,000 \
\text { Operating expenses (excluding depreciation) } & 500,000 \
\text { Purchases } & 40,000
\end{array}$ What is Acme Corporation's average operating cycle as a percentage of the year?

Question

The following information is reported by Acme Corporation.
 $\begin{array}{ll}
\text { Cost of goods sold } & \$ 350,000 \
\text { Average inventory balance } & 35,000 \
\text { Average accounts receivable balance } & 65,000 \
\text { Sales (all on account) } & 325,000 \
\text { Average accounts payable balance } & 45,000 \
\text { Operating expenses (excluding depreciation) } & 500,000 \
\text { Purchases } & 40,000
\end{array}$ What is Acme Corporation's average operating cycle as a percentage of the year?

Quizplus · Accepted Answer

The Answer of The following information is reported by Acme Corporation.
 $\begin{array}{ll}
\text { Cost of goods sold } & \$ 350,000 \
\text { Average inventory balance } & 35,000 \
\text { Average accounts receivable balance } & 65,000 \
\text { Sales (all on account) } & 325,000 \
\text { Average accounts payable balance } & 45,000 \
\text { Operating expenses (excluding depreciation) } & 500,000 \
\text { Purchases } & 40,000
\end{array}$ What is Acme Corporation's average operating cycle as a percentage of the year?

The Following Information Is Reported by Acme Corporation What Is Acme Corporation's Average Operating Cycle as a Percentage