You have the following balance sheet and income statement information for Epic Corp.: Line item Amount Accounts receivable (A/R) $1,760 Inventory $3,960 Accounts...

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Finance

You have the following balance sheet and income statementinformation for Epic Corp.:
Line item Amount
Accounts receivable (A/R) $1,760
Inventory $3,960
Accounts payable (A/P) $960
Sales $6,600
Cost of goods sold $5,280
All sales and purchases were on credit.
1. What is the firm's inventory period (indays)?
2. What is its average collection period (receivablesperiod) (in days)?
3. What is its account payable period (indays)?
4. How long is the operating cycle (indays)?
5. How long is the cash cycle (in days)?

Line item	Amount
Accounts receivable (A/R)	$1,760
Inventory	$3,960
Accounts payable (A/P)	$960
Sales	$6,600
Cost of goods sold	$5,280

Answer & Explanation Solved by verified expert

4.2 Ratings (618 Votes)

1 Inventory turnover COGSinventory Inventory turnover 52803960 Inventory turnover 133 days of inventory on hand number of days in a yearinventory turnover days of inventory on hand 365133 See Answer

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You have the following balance sheet and income statementinformation for Epic Corp.:Line itemAmountAccounts receivable (A/R)$1,760Inventory$3,960Accounts payable (A/P)$960Sales$6,600Cost of goods sold$5,280All sales and purchases were on credit.1. What is the firm's inventory period (indays)?2. What is its average collection period (receivablesperiod) (in days)?3. What is its account payable period (indays)?4. How long is the operating cycle (indays)?5. How long is the cash cycle (in days)?