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Excel Corporation has $ 4 million of inventory and $ 1 . 5 million of accounts receivable. Its average daily sales is $ 1 0
Excel Corporation has $ million of inventory and $ million of accounts receivable. Its average daily sales is $ The companys payables deferral period is days with total account payables of $ million. Suppose this company is expecting to increase its payable deferral period to days and to decrease its inventory conversion period to days simultaneously, how much will the company expect its Free Cash Flow in $ to increase due to these changes? Assume its days sales outstanding remains unchanged.
Excel Corporation has $ million of inventory and $ million of accounts receivable. Its average daily sales is $ The companys payables deferral period is days with total account payables of $ million. Suppose this company is expecting to increase its payable deferral period to days and to decrease its inventory conversion period to days simultaneously, how much will the company expect its Free Cash Flow in $ to increase due to these changes? Assume its days sales outstanding remains unchanged.
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