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Operating Cycle Analysis for Working Capital Management : A manufacturing company has an average accounts receivable turnover of 10 times per year and an average
Operating Cycle Analysis for Working Capital Management: A manufacturing company has an average accounts receivable turnover of 10 times per year and an average inventory turnover of 6 times per year. Calculate the company's operating cycle and discuss how a shorter or longer operating cycle affects working capital requirements and liquidity management.
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