cash wheel
the cash wheel illustrates the operating cash flow cycle of a business sales of products and services and services to customers generate accounts receivable.
which are eventually turned into cash is used to produce inventory , which in turn can be used to generate more sales.
however depending on the nature of the business.
considerable time can elapse between the moment that the company disburses cash to purchase inventory and pay operating expenses until it receives cash from customers for goods and services received.