Topic: Cash Cycle Week 5 D: Describe The Operating Cycle And The Cash Cycle. What Are The Differences?

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Topic: Cash Cycle Week 5 D: Describe The Operating Cycle And The Cash Cycle. What Are The Differences?

Instructions:

Provide a half page response to each of the following questions. Cite two sources (APA) for each question and indicate for which question the source was used. No Title Page required
Describe the operating cycle and the cash cycle. What are the differences?
Explain the connection between a firm’s accounting-based profitability and its cash cycle

Content:

Cash Cycle Week 5D

Describe the operating cycle and the cash cycle. What are the differences?

The operating cycle mainly represents the average time that it takes for a company to acquire inventory and collect cash from the sale of the same (Sekhar, 2009). The sale made might not necessarily be from the same inventory but of something that is associated with it. For example, a firm might acquire raw materials for making water bottles and after two months have its customer, a local water company, buy the finished product. In the scenario above, the operating cycle will be the two months that it took the

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Topic: Cash Cycle Week 5 D: Describe The Operating Cycle And The Cash Cycle. What Are The Differences?

Topic: Cash Cycle Week 5 D: Describe The Operating Cycle And The Cash Cycle. What Are The Differences?

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Content:

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