These data indicate that BOP has reduced its overall operating cycle (to 261.5 d

These data indicate that BOP has reduced its overall operating cycle (to 261.5 days) as well as the number of days to be financed with sources of funds other than accounts payable (from 78 to 63 days). Most businesses cannot finance the operating cycle with accounts payable financing alone so working capital financing usually short-term interest-bearing loans is needed to cover the shortfall. In this case BOP would need to borrow less money to finance its operating cycle in 2012 than in 2011.Instructions(a) Use the BOP analysis to briefly discuss how the operating cycle data relate to the amount of working capital and the current and acid-test ratios.(b) Select two other real companies that are in the same industry and complete the operating cycle worksheet on the previous page along with the working capital and ratio analysis. Briefly summarize and interpret the results. To simplify the analysis you may use ending balances to compute turnoverratios.