Example:Cash Cycle Accounts Payable Period 365/payables turnover Payables turnover COGS Average AP ■PT=820,000/87,500=9.4 times Accounts payables period 365/9.4 39 days Cash cycle 168-39 129 days So.we have to finance our inventory and receivables for 129 days 99 Example: Cash Cycle n Accounts Payable Period = 365 / payables turnover q Payables turnover = COGS / Average AP n PT = 820,000 / 87,500 = 9.4 times q Accounts payables period = 365 / 9.4 = 39 days n Cash cycle = 168 – 39 = 129 days n So, we have to finance our inventory and receivables for 129 days