Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories...
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Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 77 days, and accounts receivable are collected in 49 days. Accounts payable are paid approximately 27 days after they arise. The firm has annual sales of about $35 million. Cost of goods sold are $21 million, and purchases are $13 million a. Calculate the firm's operating cycle. b. Calculate the firm's cash conversion cycle. C. Calculate the amount of resources needed to support the firm's cash conversion cycle. d. Discuss how management might be able to reduce the cash conversion cycle
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