The following analysis is based on information obtained from the 2017 financial statements of Pacific Company,River Corporation,and Ocean Company.

$$\begin{array} { l r r r }
\text { (in millions) } & \text { Pacific } & \text { River } & \text { Ocean } \
\text { Accounts receivable turnover ratio } & 10.7 & 18.9 & 12.1 \
\text { Inventory turnover ratio } & 9.1 & 18.4 & 6.4
\end{array}$$ A) Compute the cash-to-cash operating cycle for each company for 2017 .
B) What does this ratio measure? Which company has the better cash-to-cash operating cycle?

Question

The following analysis is based on information obtained from the 2017 financial statements of Pacific Company,River Corporation,and Ocean Company.
​
 $$\begin{array} { l r r r } 
\text { (in millions) } & \text { Pacific } & \text { River } & \text { Ocean } \
\text { Accounts receivable turnover ratio } & 10.7 & 18.9 & 12.1 \
\text { Inventory turnover ratio } & 9.1 & 18.4 & 6.4
\end{array}$$ A) Compute the cash-to-cash operating cycle for each company for 2017 .
B) What does this ratio measure? Which company has the better cash-to-cash operating cycle?

Quizplus · Accepted Answer

The Answer of The following analysis is based on information obtained from the 2017 financial statements of Pacific Company,River Corporation,and Ocean Company.
​
 $$\begin{array} { l r r r } 
\text { (in millions) } & \text { Pacific } & \text { River } & \text { Ocean } \
\text { Accounts receivable turnover ratio } & 10.7 & 18.9 & 12.1 \
\text { Inventory turnover ratio } & 9.1 & 18.4 & 6.4
\end{array}$$ A) Compute the cash-to-cash operating cycle for each company for 2017 .
B) What does this ratio measure? Which company has the better cash-to-cash operating cycle?

The Following Analysis Is Based on Information Obtained from the 2017