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Q1. ABC Corporation has 10 million in inventory and 8.5m in accounts receivable. A 15% reduction in inventories and accounts receivable is proposed. Sales would
Q1. ABC Corporation has 10 million in inventory and 8.5m in accounts receivable. A 15% reduction in inventories and accounts receivable is proposed. Sales would reduce by 8%, while the payables deferral period would remain at 30 days. A company has annual sales of 4m. The CGS is 65% of sales. Find the change in cash conversion cycle
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