Introduction to Operating Cash Cycle
While assessing the liquidity of a business, it is significant to be aware of the operating cash cycle (OCC). In the matter of a business which purchases goods on credit for consequent resale on credit (for instance, a wholesaler), this might be described as the time period among the outlay of cash essential for the purchase of inventories and the final receipt of cash from the credit customer.
Figure: depicts that payment for inventories obtained on credit takes place sometime after those inventories have been purchased and, so no immediate cash outflow occurs from the purchase. Likewise, cash receipts from credit customers will take place sometime after the sale is made. So, there will be no immediate cash inflow like a result of the sale. The operating cash cycle (OCC) is the time period among the payment made to the supplier for goods and the cash that received from the credit customer. However Figure 7.2 depicts the position for a wholesaling business, the definition of the operating cash cycle (OCC) can simply be adapted for other types of businesses, like manufacturers and retailers.
The operating cash cycle (OCC) is significant because it has an important affect on the financing needs of the business. Generally speaking, the longer the cycle, the greater the financing needs of the business and the greater the financial risks. Because of this reason, a business may want to decrease the OCC to the minimum possible period.
For the kind of business which buys inventories and then sells them on credit, the operating cash cycle (OCC) can be computed from the financial statements through using specific ratios.
The calculation is as displayed in Figure as follow:
Figure: calculating the operating cash cycle
Latest technology based Financial Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Operating Cash Cycle homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Operating Cash Cycle, project ideas and tutorials. We provide email based Operating Cash Cycle homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Operating Cash Cycle. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of Operating Cash Cycle. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Method of analysis of lipids tutorial all along with the key concepts of Physical properties of lipids, Chemical properties of lipids, Acid value, Iodine value, Functions of lipids, Analyses of lipids and Extraction of lipids
Theory and lecture notes of Pros and cons of concurrency all along with the key concepts of pros and cons of concurrency, lock management. Tutorsglobe offers homework help, assignment help and tutor’s assistance on pros and cons of concurrency.
tutorsglobe.com immunization assignment help-homework help by online prophylaxis of diphtheria tutors
Theory and lecture notes of Lines in the Plane all along with the key concepts of Slope of a Line, Point-Slope Form of a Line, Slope-Intercept Form of a Line, General Form of a Line, Vertical and Horizontal Lines, Perpendicular Lines and Parallel Lines. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Lines in the Plane.
theory of sequential circuit design all along with the key concepts of sequential circuit design, finite state machines, combinational logic, digital watch interface, homomorphic image. tutorsglobe offers homework help, assignment help and tutor’s assistance on sequential circuit design.
connect and measure the voltages of various stages in am radio receiver. connections are given according to the block diagram
tutorsglobe.com pteridophytes assignment help-homework help by online biodiversity tutors
Energetic of Nuclear Radiation tutorial all along with the key concepts of Conservation Laws in Nuclear Interaction, Conservation of Used Energy, Mass Energy, Elastic scattering, Inelastic Scattering and Compound Nucleus Model
tutorsglobe.com acquired immunity assignment help-homework help by online immunity tutors
tutorsglobe.com kuhne’s fermentation tube experiment assignment help-homework help by online respiration tutors
A widely-used performance target is based on total shareholder return (TSR). The total return from a share is made up of two elements: the increase (or decrease) in share value over a period plus any dividends paid during the period.
www.tutorsglobe.com offers Level of SRS homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com viscosity assignment help-homework help by online cell membrane tutors
Avail the most customized Homeostasis Assignment Help service from qualified tutors to secure superb grades with ease.
www.tutorsglobe.com offers solve lpp by graphical solution procedure sample assignments, free examples, solved questions in operation research and methodology.
1935232
Questions Asked
3689
Tutors
1460292
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!