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Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 5 times each year; it has an average collection period of 37 days
Multiple changes in cash conversion cycle Garrett Industries turns over its inventory 5 times each year; it has an average collection period of 37 days and an average payment period of 31 days. The firm's annual sales are $3.2 million. Calculate the firm's operating cycle and its cash conversion cycle. Assume a 365-day year. Garrett's operating cycle, OC, is days. (Round to the nearest whole number.)
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