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Analyze the liquidity position of Company AAAA using the cash conversion cycle (CCC), given its average inventory turnover of 6 times per year, average accounts

  • Analyze the liquidity position of Company AAAA using the cash conversion cycle (CCC), given its average inventory turnover of 6 times per year, average accounts receivable collection period of 45 days, and average accounts payable payment period of 30 days. Compute the company's CCC and interpret its implications for working capital management, cash flow efficiency, and operational performance. Recommend strategies for optimizing the cash conversion cycle and enhancing liquidity management practices.
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