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Define the following terms and list the equation for each. Inventory conversion period Average collection period Payables deferral period Cash conversion cycle What should a

  1. Define the following terms and list the equation for each.

    • Inventory conversion period

    • Average collection period

    • Payables deferral period

    • Cash conversion cycle

  1. What should a firms goal be regarding the cash conversion cycle, holding other things constant? Explain your answer.

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