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Question 18.2: The Operating and Cash Cycles You have collected the follow...

The Operating and Cash Cycles 

You have collected the following information for the Slowpay Company:

Ending Beginning Item
$7,000 $5,000 Inventory
2,400 1,600 Accounts receivable
4,800 2,700 Accounts payable

Credit sales for the year just ended were $50,000, and cost of goods sold was $30,000.

How long does it take Slowpay to collect on its receivables? How long does merchandise stay around before it is sold? How long does Slowpay take to pay its bills?

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