The Following Analysis Is Based on Information Obtained from the 2017

question 34

Essay

The following analysis is based on information obtained from the 2017 financial statements of Pacific Company,River Corporation,and Ocean Company.
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$$\begin{array} { l r r r } \text { (in millions) } & \text { Pacific } & \text { River } & \text { Ocean } \\\text { Accounts receivable turnover ratio } & 10.7 & 18.9 & 12.1 \\\text { Inventory turnover ratio } & 9.1 & 18.4 & 6.4\end{array}$$ A) Compute the cash-to-cash operating cycle for each company for 2017 .
B) What does this ratio measure? Which company has the better cash-to-cash operating cycle?

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Definitions:

Marketing Strategy

a company's plan designed to promote products or services to reach a specific target market, involving decisions on product, price, place, and promotion.

Frequent Purchases

Transactions that occur regularly over a period, often for everyday goods or services that require replenishment or constant demand.

Brand

A unique design, sign, symbol, words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors.

Liquid Detergents

Cleaning agents in liquid form designed for laundry or dishes.