A market study was completed for a retail operation.

The market study and RMA indicates:

Sales 1,000

COGS/Sales 60%

Days A/R 40

Days Inv. 90

Days A/P 40

Days Accrual 10

(Show all of your work)

• What is the operating cycle (in days)? Choose the correct formula

• What is the A/R at the end of the year ($s)? Choose the correct formula

• What is the Inventory at the end of the year ($s)? Choose the correct formula

• What is the Accounts Payable at the end of the year ($s)? Choose the correct formula

• What is the Accruals at the end of the year ($s)? Choose the correct formula

• What is the investment in PWC ($s)? Choose the formula you will be using the answers from above.