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The following data are available for the current year for C Company. C Company uses a 365-day year when computing ratios. Annual credit sales
The following data are available for the current year for C Company. C Company uses a 365-day year when computing ratios. Annual credit sales = $18 million Cost of goods sold = $12 million Inventory $3 million = Accounts receivable = $3.6 million. Accounts payable outstanding = $ 2million a) What is the operating cycle of C Company? b) What is the cash conversion cycle of C Company? (25p)
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a The operating cycle of a company is the time it takes to convert inventory into accounts receivabl...
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
