Using the information for Smith Company in E 10, compute the operating cycle and finance period for
Question:
Using the information for Smith Company in E 10, compute the operating cycle and finance period for both years. Comment on the change in the company’s operating cycle and required days of financing from 2010 to 2011.
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2011 2010 $ 27,200 $ 20,800 34,400 Cash Markctable securitics 14,400 89,600 108,800 $240,000 $ 80,000 $645,120 435,200 $209,920 Accounts reccivable (net) Inventory Total current assets 71,200 99,200 $225,600 $ 56,400 $441,440 406,720 $ 34,720 Accounts payable Net sales Cost of goods sold Gross margin
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1439037805
9th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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