A companys operating cycle is the time frame from when a company buys materials until it obtains
Question:
A company’s operating cycle is the time frame from when a company buys materials until it obtains cash for the sale of an item. Consider a business that you have worked for or you are familiar with or utilize a fictitious company. The supervisor would like an analysis of the efficiency of the operations. Prepare a minimum 15-slide PowerPoint presentation and include the following: Draw an operating cycle of the company (e.g., you could use SmartArt in PowerPoint). Predict the length of the cash conversion cycle within that cycle. Determine the working capital needs of the company. Discuss the need for liquidity to conduct business.
Show how efficiency ratios can be used to determine the best way to conduct the operations of the company. Provide recommendations to improve efficiency.
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield