Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Ending Inventory $16,284 $19,108 Accounts receivable 11,219 13,973 Accounts payable 13,960 16,676 Net Sales $219,320 Cost of Goods sold 168,420 Calculate the operating and cash cycles. How can you interprete your answer?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
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Problem 3RE: Given the following information, convert Cardinal Companys cost of goods sold from its income...
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Calculating Cycles

Consider the following financial statement information for the Hop Corporation:

Item Beginning   Ending
Inventory $16,284   $19,108
Accounts receivable 11,219   13,973
Accounts payable 13,960   16,676
Net Sales   $219,320  
Cost of Goods sold   168,420  

Calculate the operating and cash cycles. How can you interprete your answer?

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