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Evaluate the operating efficiency of Company WW using the operating cycle, given its average inventory turnover of 6 times per year, average accounts receivable collection

  • Evaluate the operating efficiency of Company WW using the operating cycle, given its average inventory turnover of 6 times per year, average accounts receivable collection period of 40 days, and average accounts payable payment period of 30 days. Compute the company's operating cycle and interpret its implications for working capital management and operational efficiency.
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