Course Hero Logo

Endicott, M-FINC300-3.docx - 1 Week 3 Assignment Mary...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 3 out of 5 pages.

1Week 3 AssignmentMary EndicottAmerican Public UniversityFINC300: Foundations in Financial ManagementDr. Edward BalliSeptember 26, 2021
2Week 3 AssignmentExercise 1 Chapter 11In the exercise the scenario goes over The Belgian Vandeputte Group’s operating cycle.We first must understand what an operating cycle is to be able to understand what is beingdisplayed in the data in the chart being provided by the finance manager. “The operatingcycle is the average period of time required for a business to make an initialoutlay of cash to produce goods, sell the goods, and receive cash fromcustomersin exchange for the goods. This is useful for estimating theamount ofworking capitalthat a company will need in order to maintain orgrow its business” (Accounting tools 2021). In the scenario The BelgianVandeputte Group gets 18 days of credit from its lenders for a total netoperating cycle of 45 days. It seems like the company has a lot of inventory

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 5 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags
Finance, Balance Sheet, Cash Flow Statement, Generally Accepted Accounting Principles, HD DVD

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture