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You are a financial manager of ValueRite retailer based in Johannesburg. The following financial information is provided to you, assuming a 3 6 5 -
You are a financial manager of ValueRite retailer based in Johannesburg.
The following financial information is provided to you, assuming a day year:
Sales or credit salesRmillion
Cost of sales Rmillion
Value of goods in inventory Rmillion
Accounts receivable Rmillion
Accounts payable Rmillion
Calculate the Inventory Convention Period ICP Average Collection Period ACP Accounts Payable Deferral Period APDP and Cash Conversion Cycle CCC of the retailer for the year
The management has asked you for your advice on three techniques that they could implement to ensure that their debtors pay early.
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