2. Masnat Enterprise is trying to get a handle on its cash management. Reviewing the books, it...

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2. Masnat Enterprise is trying to get a handle on its cash management.

Reviewing the books, it was found that over the past year accounts receivable have averaged 75 days. Sales and inventory have averaged 60 days.

Masnat Enterprise has paid its creditors 25 days after receiving the bill.

Masnat Enterprise produces evenly over the year and is expected to spend a huge amount during the year for materials and suppliers. Compute the cash cycle.

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