It"s cash that pays the bills (not income and revenue) Without it business quickly grinds to a halt. The cycle of investing cash in resources, providing goods or services to customers using those resources and collecting cash from customers. Average length of time between receiving inventory from a supplier and. Average number of days between receiving of goods or services from a. Hence multiple financial statements selling it to a customer. Payable deferral period supplier to payment of the supplier. Average length of time between delivery of goods to customer and receipt of. Average number of days between date inventory is paid for and the date it"s. Delay between the expenditure of cash and the receipt of cash is called cash. Less time supplies give an entity to pay. More time an entity give its customer. Cash log = short because there isn"t any inventory to contend with. Lengthy manufacturing process = money for inventory for longer time.