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Margetis Inc, carries an average inventory of $750,000. Its annual $ les are $10 million, its cost of goods sold are 75% of anauat sales,
Margetis Inc, carries an average inventory of $750,000. Its annual $ les are $10 million, its cost of goods sold are 75% of anauat sales, and its CFO wants to decrease the cash conversion cycle by 6 days, based on a 365-day year. He betieves he can redace the average inventory ta 5635,450 with no effect on sales, By how much must the firm also reduce its accounts receivable to meet is goal in the reduction of its cash convenion cycle? Do not round your intermediate calculations. a. 511,650 b. 511,417 c. $13,930 d. $11,767 0.513,398
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