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(Related to Checkpoint 18.2) (Calculating the operating and cash conversion cycle) Carraway Seod Company inc. has for many years cultivated and soid what known as
(Related to Checkpoint 18.2) (Calculating the operating and cash conversion cycle) Carraway Seod Company inc. has for many years cultivated and soid what known as heritage plants and seeds. For example, the company has sought out older varieties of tomoto plants that aro no langer grown by commercial vegetable farmers since they exther take too long to mature, do not ship woll, or do not hold up for fong on the stoce shelf. The company has recently been considering warys to reduce its investment in working capital in order to make itself more profitable. At present the firmi has ain inventory conversion period of B3 days and the majority of its followed a policy of making of coced parms of 24 days. The company purchases its inventory items on credit terma that allow them 35 days to pay but has always a. What are Carraway's operating and cash conversion cycles? b. If Carraway were to decide to take full advantage of its credit terms and delay paymont until the last possible date, how would this impact their ensh conversion cycle c. What would be your recommendation to the company with regard to its working capital manayoment practices and why? a. Carrawny's operating dycle le days. (Round to the nearest whole number.)
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