Part 1. Part 2.

Problem 26-6 Calculating Cycles Consider the following financial statement information for the Hop Corporation: Item Beginning Inventory $ 10,800 Accounts 5,800 receivable Accounts payable 8,000 Net sales Cost of goods sold Ending $11,800 6,100 8,400 $ 88,000 68,000 Calculate the operating and cash cycles. (Use 365 days a year. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Operating cycle Cash cycle days days Problem 4-45 Comparing Cash Flow Streams You have your choice of two Investment accounts. Investment A is a 14-year annuity that features end-of-month $2,000 payments and has a rate of 8.5 percent compounded monthly. Investment B is a lump-sum Investment with an interest rate of 8 percent compounded continuously, also good for 14 years. How much money would you need to invest in B today for it to be worth as much as Investment A 14 years from now? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount needed