Inventories have an average age of 110 days, and accounts receivable have an average age of 50 days. Accounts payable are paid approximately 40 days after they arise. The firm has annual sales of $36 million, its cost of goods sold represents 75% of sales, and its purchase represent 70% of cost of goods sold. Assume a 365 day year. Calculate the firms operating cycle (OC) and cash conversion cycle (CCC). Calculate the amount of total resources the company has invested in its CCC.
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