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The cash conversion cycle is not 1.the time required to convert accounts receivable into cash. 2.the average collection period for receivables plus the days inventories

The cash conversion cycle is not

1.the time required to convert accounts receivable into cash.

2.the average collection period for receivables plus the days inventories outstanding less the days accounts payable outstanding.

3.the operating cycle less the days accounts payable outstanding.

4.the number of days of nonspontaneous financing required to support the operating cycle.

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