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A company has the following data: • Average age of inventory = 75 days • Average age of accounts receivable = 50 days Average age of accounts payable = 45 days What is the number of days in the cash conversion cycle?

A company has the following data: • Average age of inventory = 75 days • Average age of accounts receivable = 50 days Average age of accounts payable = 45 days What is the number of days in the cash conversion cycle?

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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A company has the following data: • Average age of inventory = 75 days • Average age of accounts receivable = 50 days Average age of accounts payable = 45 days What is the number of days in the cash conversion cycle?
Transcribed Image Text:A company has the following data: • Average age of inventory = 75 days • Average age of accounts receivable = 50 days Average age of accounts payable = 45 days What is the number of days in the cash conversion cycle?
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