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1 Pretty Lady Cosmetic Products has an average productionprocess time of 40 days. Finished goods are kept on hand for anaverage of 15 days before they are sold. Accounts receivable areoutstanding an average of 35 days, and the firm receives 40 days ofcredit on its purchases from suppliers.a.Estimate the averagelength of the firm's short-term operating cycle. How often wouldthe cycle turn over in a year?b.Assume net sales of $1,200,000 andcost of goods sold of $900,000. Determine the average investment inaccounts receivable, inventories, and accounts payable. What wouldbe the net financing need considering only these threeaccounts?
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total per unit sales (43,000 units) $ 301,000 $ 7.00 variable expenses 172,000 4.00 contribution...
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