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Daphna Corporation has the following data, in thousands. Assume a 365-day year. Annual sales = 45,000 Annual cost of goods sold = 31,500 Average Inventory

Daphna Corporation has the following data, in thousands. Assume a 365-day year.

Annual sales = 45,000

Annual cost of goods sold = 31,500

Average Inventory = 4,000

Average Accounts receivable = 2,000

Average Accounts payable = 2,400

Benchmark Cash Cycle (industry average) 52 days

Instructions:

1. Calculate the following:

a.Inventory period

b.Receivables period

c. Payables period

d.Operating cycle

e.Cash cycle

2. Answer the following:

a.How does the firm's cash cycle compare to its competitors? Is the firm performing better or worse than its competitors?

b.Explain some of the collection and disbursement techniques used by the companies to manage cash.

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