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# Your boss asks you to compute the company's cash conversion cycle.

• Your boss asks you to compute the company's cash conversion cycle. Looking at the financial statements, you see that the average inventory for the year was \$126,300, accounts receivable were \$97,900, and accounts payable were at \$115,100. You also see that the company had sales of \$324,000 and that cost of goods sold was \$282,000. What is your firm's cash conversion cycle? Round to the nearest day.

SOLUTION:
Cash Conversion Cycle = Days Inventory Outstanding + Days Receivable Outstanding - Days Payables Outstanding
Ratios Formula Calculation Inventory Turnover Ratio
Receivable Turnover Ratio...

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