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You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your
You have recently been hired to improve the performance of Multiplex Corporation, which has been experiencing a severe cash shortage. As one part of your analysis, you want to determine the firms cash conversion cycle. Using the following information and a 365-day year, (a) what is your estimate of the firms current cash conversion cycle? (b) What does the number mean? (c) Illustrate using a diagram.
Current inventory = $20,000. Annual sales = $80,000. Accounts receivable = $5,000. Accounts payable = $4,000. Cost of goods sold = $60,000.
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