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The Smith Company normally has 45 days of Sales tied up on Inventory. Days Sales Outstanding (DSO) on average is 35 days and the company

The Smith Company normally has 45 days of Sales tied up on Inventory. Days Sales Outstanding (DSO) on average is 35 days and the company can stretch payments to vendors out to 30 days. What is the CCC for the Smith Company? What does the CCC answer tell us? Is the CCC for the company good or bad? How could the company improve its CCC?

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