Top Hat Industries is trying to improve cash management. The company currently has the following information regarding

Question:

Top Hat Industries is trying to improve cash management. The company currently has the following information regarding its cash management:
• Average inventories age is 120 days
• are paid 60 days from invoice date
• are collected in 90 days
• Annual sales are $25,000,000
• What is Top Hat
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...