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 76 days, and accounts receivable are collected in 42 days. Accounts payable are paid approximately 26 days after they are the firm has annual sales of about $34 milion Cost of goods sold are 522 million, and purchases are 514 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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