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Cash conversion cycle company had an inventory conversion period of 68 days an average collection period of 37 days and deferral period of 25 days.
Cash conversion cycle company had an inventory conversion period of 68 days an average collection period of 37 days and deferral period of 25 days. Assume the cost of goods is 80% of sales. Assume 365 days in year for your calculations. What is the length of firms cash conversion cycle? If sales are $3,637,275 and all sales are on credit what is the firms investment in accounts receivable? How many times per year does company turn over its inventory?
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