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3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle,

3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle.
Transcribed Image Text:3. Everest Pasmina Factory turns its inventory 8 times each year, has average payment period of 30 days, and collection period of 60 days. Firm's total outlays in operating cycle investments are Rs 3.3 millions. Assume 360 days a year. a. Calculate firm's operating and cash conversion cycle.
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