The following data is available for Quick Serve Trading Ltd. Account
Question:
The following data is available for Quick Serve Trading Ltd.
Account Beginning balance Ending Balance
Accounts payable 120,300 124,400 Inventory 160,600 167,200 Long term debts 327,500 325,800 Common stock 400,400 415,900
Accounts receivable 123,400 122,300 Total revenue 737,000 Total cost of sales 265,000
Note - Assume that all sales are on credit)
Required:
a) Calculate the operating cycle and the cash cycle
b) Interpret and explain the outcomes
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson