NiKi International Pte Ltd reported healthy profits from its business for the past few years. However, the
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Question:
NiKi International Pte Ltd reported healthy profits from its business for the past few years. However, the company still experience cash flow issues occasionally. In order to prevent such incidence to happen again, the Finance Manager had compiled the following information for analysis:
20192020
Annual credit sales $800,000 $970,000
Cost of goods sold $360,000 $560,000
Accounts receivable balance $270,000 $410,000
Inventory balance $290,000$330,000
Balance in accounts payable $200,000 $290,000
Assume that there are 365 days in a year.
A) Compute the operating cycle for Year 2020.
B) Determine the cash cycle for Year 2020.
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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