Question
Montreal Bagel Bakery collects 35% of its monthly sales immediately and the rest a month later. Its production costs are 65% of sales. It holds
Montreal Bagel Bakery collects 35% of its monthly sales immediately and the rest a month later. Its production costs are 65% of sales. It holds 1 month of sales in inventory, and pays half its bills immediately and half after 30 days. Calculate the operating cycle (OC) and the cash conversion cycle (CCC) for Montreal Bagel Bakery.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
