CORPORATE FINANCE - LL+CONNECT ACCESS
12th Edition
ISBN: 9781264054961
Author: Ross
Publisher: MCG
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Chapter 26, Problem 2CQ
Summary Introduction
To explain: The characteristics of the firm with long cash cycle.
Cash Cycle:
The time period between the payment of cash to the supplier for the purchase of raw material and the receipt of cash from customer for the sale of product is known as cash cycle of a business. If the cash cycle is shorter, the amount of available cash is more and the company has no need to borrow cash from outsiders.
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