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Operating and conversion cycle Both of these tools are important for any manager to know as most business failures are due to poor working capital

Operating and conversion cycle
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Both of these tools are important for any manager to know as most business failures are due to poor working capital management. You are a manager for a medium sized company and have been given the following information: Your inventory turnover is 6 You have an average accounts receivable of $200,000 and sales of $1,200,000 Your accounts payable is $100,000 and your cost of goods sold is $800,000. What is your inventory period? What is your operating cycle? What is your cash conversion cycle? What does this tell you? Where can you improve

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