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average inventory $825,000 annual sales $11,000,000 cost of goods sold 75% of annual sales, and its receivable collection period is twice as long as it's
average inventory $825,000 annual sales $11,000,000 cost of goods sold 75% of annual sales, and its receivable collection period is twice as long as it's inventory conversion period. the firm buys on terms of net 30 days wants decrease the cash conversion cycle by 20 days, based on a 365-day year. He believes can reduce the average inventory to $677,700 with no effect on sales. By how much the firm also reduce its accounts receivable to meet its goal in the reduction of its cash conversion cycle?
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