Suppose that Dunn Industries has annual sales of $2,300,000, cost of goods sold of $1,650,000, average inventories

Question:

Suppose that Dunn Industries has annual sales of $2,300,000, cost of goods sold of $1,650,000, average inventories of $1,116,000, and average accounts receivable of $750,000. Assuming that all of Dunn’s sales are on credit, what will be the firm’s operating cycle?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...