Garrett Industries turns over its inventory six times each year; it has an average collection period of
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Garrett Industries turns over its inventory six times each year; it has an average collection period of 45 days and an average payment period of 30 days. The firm’s annual sales are $3 million. Calculate the firm’s operating cycle and its cash conversion cycle.
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To calculate Garrett Industries operating cycle and cash conversion cycle we need to use the following formulas Operating Cycle OC Inventory Conversio...View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 9781292400648
16th Global Edition
Authors: Chad Zutter, Scott Smart
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