Would like to ask a question regarding a Computer company CPI that sells computer pheriperals. THe question is describe the operating cycle of a merchandising company? Identify the assets and liabitlies directly affected by this cycle??

You need to know what kinds of assets and liabilities that the company has like; cash, inventory equipment, accounts receivable, accounts payable, etc... also how the income statement will be affected.

Also what accounts are affected for a purchase and sale of merchandise.