Question

what is formula to calculate gross operating cycle​

Answer 1

Answer:

Operating Cycle = Inventory Period + Accounts Receivable Period

Inventory Period is the amount of time inventory sits in storage until sold.

Accounts Receivable Period is the time it takes to collect cash from the sale of the inventory.

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Answer 2

Answer:

Gross OC = Raw Material Holding Period + Work-In-Process Period + Finished Goods Holding Period + Receivables Collection Period.