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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Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

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