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Operating Cycle Work Sheet Operations

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The Operating Cycle measures how long it takes to convert purchased material into cash from the sale of goods. This figure represents the number of days that cash is tied up and helps to determine the amount of working capital you need to operate your business.  There are three factors discussed in this document to calculate the Operating Cycle.  This document contains standard language commonly used in any industry.  Use this form to determine how long it would take to convert purchased material into cash from the sale of goods.

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