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Company A's for 2014 had $56,940M in Sales, $44,754M Cost of Goods Sold. The Account Receivable were $9,842M. Finally, the Inventory and Accounts Payable were
Company A's for 2014 had $56,940M in Sales, $44,754M Cost of Goods Sold. The Account Receivable were $9,842M. Finally, the Inventory and Accounts Payable were $1,382M and $15,223M respectively.
a. Use it to compute the company cash conversion cycle
b. What happens if the Accounts Payable increases by 10%?
c. What should be the value for Accounts Payable in order to have a Cash Conversion Cycle of 0 days?
d. Imagine that sales increases by 18%. Applying the Percentage of Sales Method, what would be the new Cash Conversion Cycle?
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