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The following definitions are correct: Sale-to-Cash Conversion Period - Average days of sales committed to the extension of trade credit Inventory-to-Sale Conversion Period - Measured
The following definitions are correct: Sale-to-Cash Conversion Period - Average days of sales committed to the extension of trade credit Inventory-to-Sale Conversion Period - Measured by dividing the average daily cost of goods sold into the average inventory Purchase-to-Payment Conversion Period = Average time from purchase of materials and labor to actual cash payment Cash Conversion Cycle = Average time it takes a firm to complete its operating cycle after deducting the days supported by trade credit and delayed payroll financing Fixed Assets-to-Usage Conversion Period - Not a component in the cash conversion cycle True False
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