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Rapid Growth Company has been experiencing cash flow challenges due to rapid expansion. Using the following information, calculate the firm's Cash Conversion Cycle: • . • • • Average inventory = $220,000 Annual sales = $1,800,000 Annual cost of goods sold = $1,080,000 Average accounts receivable = $390,000 Average accounts payable = $105,000

Rapid Growth Company has been experiencing cash flow challenges due to rapid expansion. Using the following information, calculate the firm's Cash Conversion Cycle: • . • • • Average inventory = $220,000 Annual sales = $1,800,000 Annual cost of goods sold = $1,080,000 Average accounts receivable = $390,000 Average accounts payable = $105,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 10P
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Rapid Growth Company has been experiencing cash flow challenges due to rapid expansion. Using the following information, calculate the firm's Cash Conversion Cycle: • . • • • Average inventory = $220,000 Annual sales = $1,800,000 Annual cost of goods sold = $1,080,000 Average accounts receivable = $390,000 Average accounts payable = $105,000
Transcribed Image Text:Rapid Growth Company has been experiencing cash flow challenges due to rapid expansion. Using the following information, calculate the firm's Cash Conversion Cycle: • . • • • Average inventory = $220,000 Annual sales = $1,800,000 Annual cost of goods sold = $1,080,000 Average accounts receivable = $390,000 Average accounts payable = $105,000
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