P1. Pretty lady cosmetic has an average production process time of 40 days . Finished goods are kept on hand for an average of 15 days befre they are sold. Accounts Recievable are outstand an average of 35 days, and the firm receives 40 days credit on it purchases from suppliers .
a). Estimate the average length of the firm short term operating cycle. How often would the cycle turn over in a year .
b) Assume net sales of 1,200,000 and cost of goods sold of 900,000 determine the average investment in accounts receivable, inventories and accounts payable . What would be the net financing need considering only these three accounts?
